Which of the following is not a characteristic of a perfectly competitive market?
A)Large number of firms in the industry.
B)Outputs of the firms are perfect substitutes for one another.
C)Limited information is available to all market participants.
D)Ease of entry into the market.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, a large number of firms exist with identical products, making them perfect substitutes. There is easy entry and exit to the market with no barriers to entry. All participants have access to perfect information, which ensures that there is no information asymmetry. However, limited information cannot exist in a perfectly competitive market.

Which of the Following Is Not a Characteristic of a Perfectly