Which of the following is not an assumption of a perfectly competitive market?
A)Fragmented industry
B)Differentiated product
C)Perfect information
D)Equal access to resources

Question

Quizplus · Accepted Answer

A perfectly competitive market assumes that all firms sell identical products, so there is no differentiation among products. Differentiated product is not an assumption of a perfectly competitive market. In a perfectly competitive market, all firms produce identical products, so there is no differentiation between them. The other options are assumptions of a perfectly competitive market. A fragmented industry means there are many small firms, perfect information means that all market participants have access to the same information, and equal access to resources means that all firms have the same access to inputs like labor and raw materials.

Which of the Following Is Not an Assumption of a Perfectly