Explain the implications of the feature ‘homogeneous products’ in perfectly competitive market
Homogeneous products mean the products which are identical in quality, shape, size and colour. So, no producer is in a position to charge a different price of the product it produces. A uniform price prevails in the market. In a perfectly competitive market, commodity is homogeneous (identical). Thus, the buyers find no reason to prefer the product of one seller to the product of another. Hence, the firms are price takers.