Which of the following statements is true of a perfectly competitive market?

Question

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In a perfectly competitive market, there is free entry and exit, which means that new firms are able to enter the market easily if there are profits to be made, and firms can exit the market just as easily if they are not making profits. This ensures that there are many buyers and sellers in the market, which helps to prevent any one firm from having the power to set prices. In a perfectly competitive market, all goods are identical or homogeneous, so there are no differentiated products. Prices are determined by the market forces of supply and demand, and no individual seller or buyer has the power to set prices.

Which of the Following Statements Is True of a Perfectly