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Which of the following is not an essential condition of pure competition?
Answer & Solution
Correct Answer:
Option
D
Absence of transport cost is not an essential condition of pure competition. If the two conditions of pure competition are fulfilled, there can be no question of monopolistic control. In perfect competition, apart from the absence of monopoly, some other conditions are also essential, e.g., free entry and exit, the absence of transport cost, perfect knowledge.
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