Which of the folloing is not an assumption of a perfectly competitive market structure?

Large number of buyers and sellers

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Free entry and exit

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The output produced by any firm is distinguishable from that of another

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The consumers and firms have perfect knowledge about output inputs and their prices

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Solution

The correct option is C The output produced by any firm is distinguishable from that of another
In a perfectly competitive market, the goods are identical i.e. the goods produced by one seller are identical to that of the goods produced by another seller. In other words, buyers wouldn't have a preference for one good over another.

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