All of the following are characteristics of a perfectly competitive market except
A) there are no barriers preventing new firms from entering a market
B) each firm produces a standardized product
C) there is a relatively small number of firms in the market
D) each firm is a price taker rather than a price maker

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there is typically a large number of firms, not a small number. This large number of firms contributes to the competitive nature of the market, ensuring no single firm can significantly influence market prices.

All of the Following Are Characteristics of a Perfectly Competitive