Which of the following is not a characteristic of a perfectly competitive market?
A)There is free entry and exit.
B)There are many buyers and sellers.
C)Sellers must accept the price the market determines.
D)Different sellers sell differentiated products.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all sellers sell homogeneous or identical products, not differentiated products. Differentiation of products is a characteristic of monopolistic competition, not perfect competition.

Which of the Following Is Not a Characteristic of a Perfectly