Which Of The Following Is Not A Characteristic Of A Perfectly Competitive Market?

Are you learning about the perfectly competitive market? While learning, have you encountered any questions? “Which of the following is a characteristic of a perfectly competitive market?”

Here I will give you the answer. But in order to get the answer to this question, you need to understand the concept of a perfectly competitive market. And the conditions of “a market is perfectly competitive if…”

What Conditions Make A Market Perfectly Competitive?

A perfect or pure market condition is a general market formation where some criteria should be matched. And these criteria are mentioned below. 

• All firms are selling identical products. Here the product is a “homogenous” or “commodity.”
• Any market share should not have any impact on prices.
• All firms are price takers. The firms can not influence the market price of any product. 
• Without cost, firms can enter or exit the market.
• In the past, present, and future, the buyers have “perfect” or complete information about the products that are being sold along with the prices that firms are charging.
• Resources for such effort or labor are perfectly mobile.  

More realistic imperfect competition can be contracted with this. Whenever a market, real or hypothetically, violets all those abstracts tenets of neoclassical perfect or pure competition. 

Due to the existence of real markets outside the plane of the model of perfect competition that we are talking about. The contemporary theory of perfect vs. imperfect competition stems from the post-classical economic thought’s Cambridge tradition. 

Which Of The Following Is Characteristic Of A Perfectly Competitive Market?

Before we get to know the answer to the question “Which of the following is not a characteristic of a perfectly competitive market?” let’s find out the answer to the question that is totally opposite to the main question. 

So, the question here is, “Which of the following is a characteristic of a perfectly competitive market?” Do not worry, and we have some options for you here.

Option 1. In the market, there are few sellers.

Option 2. Firms are price setters.

Option 3. Firms can freely enter and exit the market. 

Option 4. All of the above. 

So, can you guess the answer to this question? Yes, you are thinking right. The answer to the question “Which of the following is a characteristic of a perfectly competitive market?” and the answer is Option 4—all of the above. 

In the earlier discussion, we have learned the characteristics of a perfectly competitive market. And all the characteristics that are mentioned in the Option1, Option 2, and Option 3 are correct. So, the answer will be Option 4—all of the above. 

Which Of The Following Is Not A Characteristic Of A Perfectly Competitive Market?

Now is the time to answer the question, “Which of the following is not a characteristic of a perfectly competitive market?” 

First, let’s see what options are available for this very question. 

Option 1. Firms that face a down-sloping demand curve.

Option 2. In the industry, there are a large number of firms.

Option 3. Resources are very mobile.

Option 4. The firm’s output is perfect substitutes for one another. 

If you have understood the discussion that I have mentioned earlier, you may get the answer. Didn’t you?

Well, the answer is option 3. Resources are very mobile. 

So, now you get the answer to the question that you were searching for for a long time. In order to answer this type of question, make sure that you are clear about the concept of a perfectly competitive market. 

Conclusion

So, now you get the answer to the question, “Which of the following is not a characteristic of a perfectly competitive market?” Here in this article you also get the knowledge about the concept of a perfectly competitive market, which is a bonus for you all. If you remember the characteristics of a perfectly competitive market, you will be able to answer other questions similar to this. If you still have any doubt, let me know in the comment section, and I will try to answer them as soon as possible. 

Reference: https://quizlet.com/latest 

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