Perfect competition is not characterized by
A) sizable barriers preventing new firms from entering the market
B) a large number of sellers and buyers in the market
C) all sellers and buyers being fully aware of market opportunities
D) firms producing a standardized product

Question

Quizplus · Accepted Answer

Perfect competition is characterized by the absence of barriers to entry, meaning new firms can enter the market freely. Sizable barriers preventing new firms from entering the market would not be a characteristic of perfect competition, but rather of monopolistic or oligopolistic markets.

Perfect Competition Is Not Characterized by