Perfect competition has all of the following features except
A) large number of firms
B) goods that are perfect substitutes
C) no barriers to entry
D) brand loyalty
E) firm has insignificant market share

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all products are considered perfect substitutes, meaning there is no brand loyalty. Consumers do not prefer one product over another based on brand, which is a key characteristic that differentiates perfect competition from other market structures.

Perfect Competition Has All of the Following Features Except