📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      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
      ask-question