Question

Which of the following is not one of the three conditions that characterizes a perfectly competitive​ market? A. Firms have pricing power and can set their prices freely. B. Sellers in the market produce identical goods. C. Buyers are price takers and cannot influence the price charged. D. There are no barriers to entry or exit in the market.

Answer 1

Answer: Option A

Explanation: In simple words, perfect competition refers to a market structure in which the the market have a large number of small buyers and sellers.

Due to this high volume of small level buyers and sellers no single party has the power to influence the price. The price in such market are determined by the market forces of demand and supply.

Hence from the above we can conclude that the correct option is A.