Question

Which of the following is a characteristic of perfect competition? Group of answer choices many sellers and few buyers many buyers and few sellers a heterogeneous product buyers and sellers having all relevant information high barriers to entry and exit

Answer 1

Answer:

The correct answer is letter "D": buyers and sellers having all relevant information.

Explanation:

Perfect Competition is a theoretical market structure in which competition is at the highest possible level. These five (5) elements contain a perfectly competitive market: all firms sell the same product, all firms are price-takers, all firms have relatively small market shares, buyers have complete product and price information, and the industry is characterized by low or no barriers to entry and exit.