A perfect competitive market has the following characteristic except ________.

free entry and exit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

homogenous products

No worries! We‘ve got your back. Try BYJU‘S free classes today!

lack of perfect information

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

large number of buyers and sellers

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C lack of perfect information
Perfect competition is a type of market where there are huge number of buyers and sellers who deals in the same type of product due to which no individual unit is able to influence the price of the product and the seller have to quote the price that prevails in the market to due customer's knowledge about the product. The firm only earn normal profits in the long run due to free entry and exist of the firm.

Suggest Corrections

Similar questions

Which of the following is not a feature of perfect competition ?

(a) Large no. of buyers

(b) Free entry and exit

(d) Differentiated products

Explain the implications of the following features of perfect competition:

(a) large number of buyers and sellers

(b) freedom of entry and exit to firms

Explain 'large number of buyers and sellers' as a feature of perfectly competitive markets.

Join BYJU'S Learning Program