Question

Which of the following is true in a perfectly competitive market? Select one: a. Brand preferences...

Which of the following is true in a perfectly competitive market?

Select one:

a. Brand preferences exist but are very slight.

b. One unit of a good or service cannot be differentiated from any other on any basis.

c. Information is costly.

d. Barriers to entry are relatively strong.

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Homework Answers

Answer #1

*ANSWER :: (B) One Unit Of A Good Or Service Cannot Be Differentiated From Any Other On Any Basis

=> Explanation :

In Perfect Competitive Market There Are Many Buyer And Seller In The Market And Firm Is Price Taker In That Market Price Is Decided By The Supply And Demand Of Particular Good.The Units That Is Produced Or Service That Is Provided By Firms In Perfect Competitive Market Are Not Differentiated To Other Units Or Service That Is Provided By Other Sellers In The Market On Any Basis They Are Similar In Quality And Not different In Any Basis. The Product is Homogeneos. In That Market Seller And Buyer Have Perfect Knowledgeus. In That Market Seller And Buyer Have Perfect Knowledge About The Market Situation. There Are No Barriers To Enter In The Market Or Exit From The Market.

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