Which of the following is a defining characteristic of all perfectly competitive markets?
A)Each firm in the market faces a perfectly inelastic demand curve.
B)The market demand curve is perfectly elastic.
C)All firms sell the same standardized product.
D)Consumers display strong brand loyalty.

Question

Quizplus · Accepted Answer

In perfectly competitive markets, all firms sell the same standardized product. Although each firm in perfectly competitive market faces a perfectly elastic demand curve, the market demand curve does not have to be perfectly elastic.

Which of the Following Is a Defining Characteristic of All