Question

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

• A. All the seller sells at same price.
• B. All the products are homogenous.
• C. Customers have no bargaining power.
• D. Customers have no purchasing power.

Answer 1

Answer: (D)

Customers have no purchasing power.

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 which usually remains uniform due to such large involvement of the masses. Therefore, customers have no purchasing power as they cannot influence the market.