Which of the following is not a basic characteristic of a perfectly competitive market?

Question

Quizplus · Accepted Answer

Significant nonprice competition is not a basic characteristic of a perfectly competitive market. In fact, firms in a perfectly competitive market typically engage in very little nonprice competition, as they are all producing a standardized product and have no market power to differentiate their product or packaging. Instead, firms in a competitive market typically compete solely on price, which is driven down to the level of the long-run equilibrium price by free entry and exit of firms.

Which of the Following Is Not a Basic Characteristic of a Perfectly