Question

All of the following are characteristics of perfect competition EXCEPT Group of answer choices many buyers and sellers. lack of barriers to entry or exit. homogeneous products. each firm is a price taker. product differentiation.

Answer 1

Answer:

The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.