One of the features of a perfectly competitive ﬁrm is that _____.
A) the product is homogeneous
B) the demand curve is upward sloping
C) the market price equals average total cost
D) economic proﬁts will always be positive in the long run

Question

Quizplus · Accepted Answer

In a perfectly competitive market, one of the key features is that the product offered by each firm is homogeneous, meaning it is identical or very similar to the product offered by other firms in the market. This characteristic ensures that consumers do not prefer one firm's product over another's based on differences in quality or features, making the firms price takers.

One of the Features of a Perfectly Competitive ﬁRm Is