Which of the following is NOT a characteristic of perfect competition?
A) There are many firms in the industry.
B) It is very difficult for a firm to enter or leave the market.
C) There is great similarity among products offered by different firms.
D) Firms are small.

Question

Quizplus · Accepted Answer

In perfect competition, it should be easy for firms to enter or exit the market. It is only in a monopoly or oligopoly market where it can be difficult for a firm to enter due to high barriers to entry or exit due to high sunk costs.

Which of the Following Is NOT a Characteristic of Perfect