All of the following assumptions apply to perfect competition except:
A)perfect information.
B)large numbers.
C)perfect resource mobility.
D)product heterogeneity.

Question

Quizplus · Accepted Answer

Perfect competition assumes that all sellers and buyers have perfect information, there are large numbers of buyers and sellers, and there is perfect resource mobility. However, it does not assume product heterogeneity - in fact, under perfect competition, products are assumed to be homogeneous, or identical.

All of the Following Assumptions Apply to Perfect Competition Except