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Correct
Solution:
(d) Absence of transport cost is not an essential condition of pure competition. The essential conditions of pure competition are:
(a) Large number of buyers and sellers: There are many buyers and sellers in the market, and no individual buyer or seller has any significant influence on the market price.
(b) Homogeneous product: The products sold by all the firms in the market are identical or very similar.
(c) Freedom of entry: There are no significant barriers to entry, and new firms can enter the market easily.
(d) Perfect information: Buyers and sellers have complete information about the prices and qualities of the products being sold in the market.
Transport costs may exist in a perfectly competitive market, but they are not an essential condition for pure competition. In fact, transport costs may lead to price differentials, which would reduce the degree of competition in the market.
Correct option is (d)