Which of the following is not an assumption of perfectly competitive markets?
A)There are many sellers and many buyers, all of which are small relative to the market.
B)Each firm produces a similar but not identical product.
C)There are no barriers to new firms entering the market.
D)The products sold by all firms in the market are identical.

Question

Quizplus · Accepted Answer

The assumption of perfectly competitive markets is that firms produce identical products, so option B contradicts that assumption.

Which of the Following Is Not an Assumption of Perfectly