Advantages of perfect competition:
1. There is consumer independence in a perfect competitive market. The consumer is rational and he has perfect information about the market situation. Hence, he will not purchase the products high price.
2. In perfectly competitive market, the price is equivalent to the minimum average cost. This is advantageous to the consumer.
3. The perfectly competitive organizations are price-takers and products are homogeneous. Hence it is not essential for the producers to acquire expenditure on advertisement to promote sales. This decreases the wastage of resources.
4. In long run, the perfectly competitive firm is functioning at optimum level. This means that greatest economic efficiency in production is attained. Since the actual output generated by the firm is equivalent to the optimum output, there is no idle or unemployed or surplus capacity.
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