Many car owners and car dealers describe their different cars for sale in the local newspapers and list their asking price.Many people shopping for a used car consider the different choices listed in the paper.The absence of which condition prohibits this market from being described as perfectly competitive?

Question

Quizplus · Accepted Answer

The absence of consumers believing all firms sell identical products prohibits this market from being described as perfectly competitive. In a perfectly competitive market, all firms sell identical products, which makes it easier for buyers to compare prices and features. Without this condition, buyers may have difficulty knowing if they are getting a fair price or a better deal elsewhere.

Many Car Owners and Car Dealers Describe Their Different Cars