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24. Which of the following is a NOT characteristic of a perfectly competitive market? There are...

24. Which of the following is a NOT characteristic of a perfectly competitive market?

  1. There are many buyers and sellers.

  2. Firms sell differentiated products.

  3. There are no barriers to entry

  4. Buyers and sellers are price takers.

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Answer #1

Firms sell differentiated products

Perfectly competition is said to be exist when there are large number of buyers and sellers of a commodity, and no individual buyer or seller has any control over its price and hence they are price takers. There is no barrier on entry of new firms into the market. All seller sell identical or homogeneous products instead of differentiated products. Hence differentiated product is not a characteristic of perfectly competitive market.

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