The market for used cars is not considered perfectly competitive because:

Question

Quizplus · Accepted Answer

All of the given reasons - incomplete information, non-price taking buyers, and non-standardized goods - contribute to the fact that the used car market is not perfectly competitive. Incomplete information exists because buyers may lack knowledge about the condition or history of a specific used car. Buyers are not price takers because there is often a negotiation process between the buyer and seller. The goods are not standardized because each used car may have a unique condition, mileage, and history.

The Market for Used Cars Is Not Considered Perfectly Competitive