Which of the following is not a characteristic of a perfect competition?
A)Heavy advertising by individual sellers.
B)Homogeneous products.
C)Sellers are price takers.
D)A horizontal demand curve for individual sellers.

Question

Quizplus · Accepted Answer

Heavy advertising by individual sellers is not a characteristic of perfect competition. In perfect competition, all sellers offer homogeneous products, so advertising would not provide any competitive advantage. Additionally, in perfect competition, sellers are price takers and do not have control over the price of their products, which means advertising would not be an effective way to increase sales.

Which of the Following Is Not a Characteristic of a Perfect