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JAMB Economics 1981 Question 48

Question 48

Market Structures

Which of the following is NOT a characteristic of perfect competition?

  1. A.Many sellers and buyers in the markets
  2. B.There is perfect knowledge
  3. C.Supply and demand are equal
  4. D.There is no advertising
  5. E.Products are identical.
Show the answer and explanation

Answer: C (Supply and demand are equal)

Explanation

Many buyers and sellers, perfect knowledge, no advertising and identical products are features of perfect competition; equal supply and demand is just equilibrium, found in any market.