Perfectly competitive markets explained on the basis of supply and demand:

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Quizplus · Accepted Answer

Perfectly competitive markets are characterized by many buyers and many sellers of a standardized product who have no market power to influence the price. This assumption leads to the formation of a market price based on the interaction between supply and demand. While no market in reality perfectly fits this model, it is a useful benchmark for understanding market dynamics. Choices B and D imply some degree of market power, which goes against the assumption of perfect competition. Choice C is partially correct, as fully perfect competition may not exist in the real-world economy, but this does not mean that some markets cannot approximate it.

Perfectly Competitive Markets Explained on the Basis of Supply and Demand