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Which characteristic is NOT associated with a perfectly competitive market?
  • a)
    Large number of buyers and sellers
  • b)
    Homogeneous products
  • c)
    Price setting by individual firms
  • d)
    Free entry and exit
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which characteristic is NOT associated with a perfectly competitive ma...
In a perfectly competitive market, no individual firm has the ability to set or influence the market price. Instead, firms are price takers, meaning they have to accept the prevailing market price determined by the forces of supply and demand. Individual firms have no control over the market price and must adjust their production levels accordingly.
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Which characteristic is NOT associated with a perfectly competitive market?a)Large number of buyers and sellersb)Homogeneous productsc)Price setting by individual firmsd)Free entry and exitCorrect answer is option 'C'. Can you explain this answer?
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