Perfect competition is characterised by all of the following except
A) heavy advertising by individual sellers.
B) homogeneous products.
C) sellers are price takers.
D) a horizontal demand curve for individual sellers.

Question

Quizplus · Accepted Answer

Perfect competition is characterized by homogeneous products, sellers being price takers, and a horizontal demand curve for individual sellers. However, heavy advertising by individual sellers is not a characteristic of perfect competition as it would lead to product differentiation, which is not allowed in a perfectly competitive market.

Perfect Competition Is Characterised by All of the Following Except