Which of the following is likely to be present in a perfectly competitive market?

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In a perfectly competitive market, firms produce identical products, meaning they are indistinguishable from each other in the eyes of consumers. This eliminates any form of product differentiation and allows for perfect substitutes to exist, leading to price competition as the only way for firms to differentiate themselves. Patents, government licenses, nonprice competition such as advertising, and high capital costs are all characteristics that are not typically present in a perfectly competitive market.

Which of the Following Is Likely to Be Present in a Perfectly