Which of the following characterizes a perfectly competitive market?

Question

Quizplus · Accepted Answer

Perfect information means that all buyers and sellers in the market have access to the same information, which allows for perfect competition. In a perfectly competitive market, there are many buyers and sellers, and no single entity has market power to set prices. There are no barriers to entry or exit, and resources can freely move in and out of the market. Price is determined solely by supply and demand.	options A and B are characteristics of monopolistic competition or oligopoly, while option D mentions limited resource mobility, which is not a characteristic of a perfectly competitive market. Option E mentions barriers to entry, which is also not a characteristic of a perfectly competitive market.

Which of the Following Characterizes a Perfectly Competitive Market