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

Question

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

Quizplus · Accepted Answer

A perfectly competitive market involves many firms producing identical or homogenous products. This means that consumers have perfect information and can switch between brands easily. Patents and government licenses restrict entry into the market, thereby reducing competition. Nonprice competition such as advertising is more common in monopolistic or oligopolistic markets, where firms can differentiate their products. High capital costs may also deter entry into the market and limit competition.

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