The three primary characteristics of a perfectly competitive market are
A)the firms\ products are unique, they set their own price and can freely enter and exit the market
B)the firms\ products are homogenous, the firms are price takers and can freely enter and exit the market
C)the firms\ products are homogenous, the firms are price takers and there are barriers to entry into the market
D)the firms\ products are unique, they are price takers and there are no barriers to entry in the market

Question

Quizplus · Accepted Answer

The three primary characteristics of a perfectly competitive market include homogenous (identical) products, firms being price takers (they accept the market price as given), and free entry and exit from the market, which are all described in option B.

The Three Primary Characteristics of a Perfectly Competitive Market Are