Which is the most accurate statement?

A) There are generally large economies of scale available to perfect competitors.
B) Perfect competition is an ideal state of affairs,which unfortunately,does not exist in any industry.
C) A perfectly competitive industry often has substantial barriers to entry.
D) Although perfect competitors produce an identical product,they do compete on the basis of price.

Economies of Scale

This concept describes the cost advantage achieved by an enterprise when production becomes efficient, resulting in a decrease in the per-unit cost as output increases.

Perfect Competition

describes a theoretical market structure characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to optimal distribution of goods and services.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, strict regulations, or established brand loyalty.