Which of the following conditions is NOT present in perfect competition?
A)All companies in the market sell identical goods.
B)All companies in the market sell a small share of the total market output.
C)There are many buyers and sellers in the market.
D)The product price varies across the companies in the market.

Question

Quizplus · Accepted Answer

In perfect competition, all companies sell identical goods, sell a small share of the total market output, and there are many buyers and sellers. However, in perfect competition, the product price is the same across all companies since they are selling the same product. Therefore, D is the correct answer as the product price cannot vary across companies in a perfectly competitive market.

Which of the Following Conditions Is NOT Present in Perfect