Question 2
Market StructuresWhich of the following is not a characteristics of perfectly competitive market?
- A.forms are price takers
- B.firms have difficulty entering the market
- C.there are many sellers in the market
- D.goods offered for sale are largely the same
Show the answer and explanation
Answer: B (firms have difficulty entering the market)
Explanation
Perfect competition has free entry and exit, so difficulty in entering is not one of its features.