Which following statement does NOT apply to a perfectly competitive market?
A) Consumers prefer certain brands over others.
B) Consumers can shop for the lowest available price.
C) All firms in the industry are price takers.
D) There is freedom of entry and exit of firms in the industry.
E) All firms have realized the possible economies of scale.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, consumers do not prefer certain brands over others. They are willing to purchase from any firm that offers the product at the lowest price. This is one of the assumptions of a perfectly competitive market.

Which Following Statement Does NOT Apply to a Perfectly Competitive