Perfectly competitive markets have absolutely no drawbacks.

Name: Perfectly competitive markets have absolutely no drawbacks.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Perfectly competitive markets may have some drawbacks, including potential market inefficiencies, externalities, and lack of innovation due to the inability of firms to earn significant profits. Additionally, in reality, it is difficult to find a perfectly competitive market as there are often barriers to entry, imperfect information, and market power exerted by some firms.

Perfectly Competitive Markets Have Absolutely No Drawbacks