Which of the following is not a characteristic of a perfectly competitive market?
A) There is a large number of small firms.
B) Firms sell a homogeneous product.
C) Firms can easily enter or exit the market.
D) Firms are price makers, not price takers.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and do not have the ability to influence the market price. Therefore, option D, which states that firms are price makers, is not a characteristic of a perfectly competitive market.

Which of the Following Is Not a Characteristic of a Perfectly