Which is a required characteristic of a perfectly competitive industry?
A)There are few firms so that none can influence market price.
B)Products are highly differentiated.
C)Barriers to entry are high.
D)None of the above

Question

Quizplus · Accepted Answer

A perfectly competitive industry is characterized by a large number of firms, homogeneous products, easy entry and exit of firms, perfect information, and no market power. Therefore, the answer is none of the above since all the options list characteristics that do not align with that of a perfectly competitive industry.

Which Is a Required Characteristic of a Perfectly Competitive Industry