Economists do not consider the smartphone industry perfectly competitive because
A) the government strictly regulates entry and exit.
B) smartphones are heterogeneous.
C) smartphone manufacturers each have a small market share.
D) there are a large number of smartphone manufacturers.

Question

Quizplus · Accepted Answer

Smartphones are heterogeneous, meaning they vary widely in features, design, brand, and functionality, which contradicts the perfect competition assumption of homogeneous products.

Economists Do Not Consider the Smartphone Industry Perfectly Competitive Because