One of the defining characteristics of a perfectly competitive market is

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A perfectly competitive market is characterized by a standardized product, where all firms sell identical products. This means that consumers view the products of all firms as identical and are not willing to pay more for one firm's product over another's. This in turn leads to firms having little or no market power, and market price being determined solely by the forces of supply and demand. Option A is incorrect as there must be a large number of firms in a perfectly competitive market. Option B is incorrect as there must be a large number of both buyers and sellers. Option D is incorrect as firms in a perfectly competitive market do not engage in significant advertising.

One of the Defining Characteristics of a Perfectly Competitive Market