Which of the following is not an assumption of the perfectly competitive model?
A)All consumers know all prices.
B)The consumers of any given good or service are identical.
C)In any given market, the products of all firms are identical.
D)Individuals consume or produce small parts of output.

Question

Quizplus · Accepted Answer

The assumption of the perfectly competitive model does not include that consumers of any given good or service are identical. Instead, it focuses on product homogeneity, perfect information, and the inability of single buyers or sellers to influence the market price.

Which of the Following Is Not an Assumption of the Perfectly