Which of the following is NOT a characteristic of a

perfectly competitive market?

A A large number of buyers and sellers Correct Answer Incorrect Answer

B Homogeneous products Correct Answer Incorrect Answer

C Free entry and exit of firms Correct Answer Incorrect Answer

D Firms can influence the market price Correct Answer Incorrect Answer

E Perfect knowledge among buyers and sellers Correct Answer Incorrect Answer

Solution

In perfect competition , firms are price takers , meaning they accept the market price set by supply and demand.

The characteristics of perfect competition include many buyers and sellers, homogeneous products, free entry/exit, and perfect information.

Practice Next

More Extra content for Finance concepts Questions

Who was appointed as the second female Prime Minister of Tunisia by President Kais Saied?
Why does seawater appear blue?
Which of the following statements is/are incorrect?

1. The Maritime Decarbonization Conference was co-hosted by the Ministry of Ports, Shipping, ...
By which year does India aim to achieve net-zero carbon emissions?
Which education initiative was launched in UP in August 2025?
Which city in Uttar Pradesh is famous for its glass industry?
Which day is observed as World Kindness Day every year?
The famous Mundeshwari Temple built in 635 CE, belongs to which state?
In January 2025, where was the 10 KW FM transmitter inaugurated for Akashvani Kokrajhar?
World tribal day is celebrated on _____________?

Thank You for posting your query. Please check your email for further guidance

Please Register/Login to Download Question