Asked by
Mateo Donoso
on Oct 27, 2024
Verified
Perfect competition is characterized by:
A) rivalry in advertising.
B) fierce quality competition.
C) the inability of any one firm to influence price.
D) widely recognized brands.
Perfect Competition
A market structure characterized by a complete absence of rivalry among the individual firms. In this market, all firms sell an identical product, there are no barriers to entry or exit, and no single firm can influence the market price.
- Comprehend the significance and impact of being a price taker as opposed to a price maker in the context of perfect competition.
- Recognize the lack of advertising competition and brand distinction in markets that are perfectly competitive.
Verified Answer
CF
Learning Objectives
- Comprehend the significance and impact of being a price taker as opposed to a price maker in the context of perfect competition.
- Recognize the lack of advertising competition and brand distinction in markets that are perfectly competitive.