The fast-food industry is not considered perfectly competitive because
A) entry and exit are strictly regulated by the government.
B) the firm's products are not homogeneous.
C) there is a small number of dominant firms.
D) there is a very large number of firms.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, products are homogeneous. In the fast-food industry, products are differentiated by brand, taste, and other factors, making them not homogeneous.

The Fast-Food Industry Is Not Considered Perfectly Competitive Because