Question 35
Market StructuresWhich of the following is not a feature of a perfect market?
- A.Large number of buyers and sellers
- B.Homogeneity of products
- C.Preferential treatment
- D.Absence of transport cost
- E.Perfect knowledge of market situation
Show the answer and explanation
Answer: C (Preferential treatment)
Explanation
In a perfect market no buyer or seller is favoured; preferential treatment belongs to imperfect markets.