Perfectly competitive markets are characterized by each of the following except

A) substantial barriers to entry and exit.
B) many small potential buyers.
C) many small potential sellers.
D) identical products.
E) the absence of non-price competition.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, and strong brand loyalty among consumers.

Perfectly Competitive Markets

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy entry and exit from the market.

Non-Price Competition

Non-Price Competition involves businesses trying to win over customers through quality, service, and other factors, not including price.