Advantages of Perfect Competition:

(i) Goods are sold at the lowest possible price: The absence of barriers to entry makes it possible for new firms to emerge when positive economic profits are being recorded in the industry. As industry supply increases the price falls, to the extent that it may be possible for the consumers to pay prices equal to marginal cost of production.

(ii) Efficient Utilization of resources: Every firm being a price-taker strives to minimize costs thereby making most efficient utilization of resources.

(iii) Sales promotion is less expensive: In perfect competition, products are homogenous in the eyes of the consumers, therefore, expensive advertisement or sales promotional strategy is avoided.