In a perfectly competitive market, firms:

Name: In a perfectly competitive market, firms:
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Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce a homogeneous or identical product that does not differ in quality, design, or features. This means that consumers have no preference for one firm's product over another. In such a market, firms compete solely on the basis of price, and there are no barriers to entry or exit. Thus, choice D is the correct answer.

In a Perfectly Competitive Market, Firms