Which of the following is likely to be present in a perfectly competitive market?

Question

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A perfectly competitive market is characterized by the presence of commodities, which are standardized products that are completely identical in quality, features, and performance. Patents and government licenses are barriers to entry that limit competition, while non-price competition such as advertising is typically found in monopolistically competitive or oligopolistic markets. High capital costs may also discourage competition or entry into a market. Therefore, only choice E is likely to be present in a perfectly competitive market.

Which of the Following Is Likely to Be Present in a Perfectly