[Answer] Which of the following is characteristic of a perfectly competitive market?

Answer: • Identical products.
Which of the following is characteristic of a perfectly competitive market?

In a perfectly competitive market the demand curve facing a firm is perfectly elastic. As mentioned above the perfect competition model if interpreted as applying also to short-period or very-short-period behaviour is approximated only by markets of homogeneous products produced and purchased by very many sellers and buyers usually organized markets for agricultural products or raw materials. In real-world markets assumptions such as perfect information cannot be verified and are on…

There are FOUR broad market structures that result in Imperfect Competition. The table below provides an overview of the characteristics of each of these market structures. A situation in which many firms with slightly different products compete. Moreover firms compete by selling differentiated products that are highly substitutable but are not perfect substitutes. Therefore the level of market power under monopolistic competition is contingent on the degree of product differentiation.

What Is Perfect Competition Economics Essay – UKEssays.com

Market Models: Pure Competition Monopolistic Competition …

Econ 20…

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