Question:
Which of the following is NOT a characteristic of a perfectly competitive market?
(1) Large number of buyers and sellers.
(2) Homogeneous products.
(3) Perfect information.
(4) High barriers to entry.
(5) Firms are price takers.
Correct Answer:
(4)
Answer Explanation:
Perfect competition is defined by freedom of entry and exit. “High barriers to entry” is a characteristic of Monopoly or Oligopoly markets, not perfect competition.
Topic: Market Structures Year: 2024
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