In which of the following market types do all firms sell products so identical that buyers do not care from which firm they buy?

Question

Quizplus · Accepted Answer

In perfect competition, all firms sell products that are homogeneous or identical, and therefore buyers do not differentiate between the products sold by different firms. This leads to a situation of price-taking behavior by firms where they have to accept the prevailing market price as given and cannot influence the market price through their own pricing decisions.

In Which of the Following Market Types Do All Firms