An assumption of the model of perfect competition is:
A) discrimination.
B) ease of entry and exit.
C) few buyers and sellers.
D) limited information.

Question

Quizplus · Accepted Answer

Perfect competition assumes that there are no barriers to entry or exit in the market, meaning that new firms can easily enter and existing firms can easily exit. This assumption allows for the market to reach equilibrium without any long-term economic profits or losses. Discrimination, few buyers and sellers, and limited information are not assumptions of perfect competition.

An Assumption of the Model of Perfect Competition Is