Which of the following is not a necessary characteristic of a purely competitive industry?
A)The industry or market demand is highly elastic.
B)Firms can easily enter or leave the industry.
C)There are so many small firms that no one firm can influence the market price.
D)Consumers see no difference between the product of one firm and that of another.

Question

Quizplus · Accepted Answer

In a purely competitive industry, the key characteristics include ease of entry and exit (B), a large number of small firms where no single firm can influence market price (C), and products that are seen as identical by consumers (D). The elasticity of industry or market demand (A) is not a necessary characteristic for defining pure competition.

Which of the Following Is Not a Necessary Characteristic of a Purely