Which of the following is not a characteristic of a perfectly competitive market?
A)There are many buyers and sellers.
B)Firms can freely enter and exit the market.
C)Many firms have market power.
D)Firms sell very similar products.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, no single firm has market power. Instead, all firms are price takers and must accept the prevailing market price for their product. Therefore, choice C, "many firms have market power," is not a characteristic of a perfectly competitive market.

Which of the Following Is Not a Characteristic of a Perfectly