Which of the following is not a necessary characteristic of a purely competitive industry?
A) The industry or market demand is highly elastic.
B) Firms can easily enter or leave the industry.
C) There are so many small firms that no one firm can influence the market price.
D) Consumers see no difference between the product of one firm and that of another.

Question

Quizplus · Accepted Answer

In a purely competitive industry, the market demand does not have to be highly elastic. The key characteristics are easy entry and exit, many small firms, and homogeneous products.

Which of the Following Is Not a Necessary Characteristic of a Purely