Which of the following is a characteristic of markets with perfect competition?
A)They are markets with one highly dominant firm.
B)Attempts to use price strategically are not effective in these markets.
C)Dropping price increases total margin by more than it increases sales.
D)The firms in these markets are price setters.

Question

Quizplus · Accepted Answer

In perfect competition, there are many small firms selling homogeneous products, and consumers have perfect information, so attempting to use price strategically is not effective. The other options are not characteristic of perfect competition.

Which of the Following Is a Characteristic of Markets with Perfect