Which of the following is not a characteristic of a competitive market?
A)Buyers and sellers are price takers.
B)Each firm sells a virtually identical product.
C)Entry is limited.
D)Each firm chooses an output level that maximizes profits.

Question

Quizplus · Accepted Answer

In a competitive market, entry is not limited, as there are low barriers to entry and exit for firms. This contributes to a large number of buyers and sellers, making it difficult for any individual firm to have significant market power. Therefore, the correct characteristic that does not apply is limited entry.

Which of the Following Is Not a Characteristic of a Competitive