One of the assumptions of perfect competition is that:
A) each ?rm in the market has some, but not complete, control over the price of its product.
B) there are no barriers to entry or exit in the market.
C) there are many producers producing different products.
D) ?rms in the market advertise in order to shift the demand curve for their product.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, one of the key assumptions is that there are no barriers to entry or exit, allowing firms to freely enter or leave the market based on economic conditions. This ensures a high level of competition.

One of the Assumptions of Perfect Competition Is That