A perfect market is one in which:
A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
C) one participant in the market has more resources than the others.
D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

Question

Quizplus · Accepted Answer

A perfect market is characterized by equal access to all the factors of production, which means all firms have the same level of competitive advantage, and competition is at its highest level. Any advantages gained by one firm are available to all other firms, and there are no artificial barriers to entry or exit in the market.

A Perfect Market Is One in Which