Which of the following is not a characteristic of perfect competition?
A)The industry is fragmented.
B)Firms produce undifferentiated products.
C)Consumers have imperfect information.
D)Firms have equal access to resources.

Question

Quizplus · Accepted Answer

Perfect competition assumes that consumers have perfect or complete information about the products and prices offered by firms in the market. Imperfect information could lead to market inefficiencies and distortions. The other characteristics listed (fragmented industry, undifferentiated products, and equal access to resources) are all typical of perfect competition. Perfect competition assumes that consumers have perfect knowledge and access to information about the products and prices in the market. Therefore, answer choice C, which suggests that consumers have imperfect information, is not a characteristic of perfect competition. The other answer choices are all characteristics of perfect competition.

Which of the Following Is Not a Characteristic of Perfect