Which of the following is a characteristic of perfect competition?

Question

Quizplus · Accepted Answer

In a perfect competition market, firms sell homogeneous (identical) products, making it difficult for any one firm to differentiate its product and gain market power. There are also a large number of small firms in the market, indicating that there are no substantial barriers to entry, resulting in easy entry and exit from the market. Furthermore, since there are many firms in the market selling the same product, none of the firms have any significant control over the market. Hence, option B is the correct choice.

Which of the Following Is a Characteristic of Perfect Competition