Which is a feature of a perfectly competitive market?

price differences between firms producing the same product

significant barriers to entry into the industry

the industry's demand curve is perfectly elastic

products are standardized or homogeneous

Question

Elle Munoz

Business

23 March, 06:51

Which is a feature of a perfectly competitive market?

price differences between firms producing the same product

significant barriers to entry into the industry

the industry's demand curve is perfectly elastic

products are standardized or homogeneous

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Answers (1)

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Case Page · Answer 1

Answer: products are standardized or homogeneous

Explanation:

Products are standardized or homogeneous for the perfectly competitive market as, in the case of the competitive industry there are no barriers in the industry to entry. The products are homogeneous in the nature and there is large numbers of the firms are perfectly substituted in the industry. So, the price elasticity of the demand for the firm product is infinite.

Which is a feature of a perfectly competitive market?price differences between firms producing the same productsignificant barriers to entry into the industrythe industry's demand curve is perfectly elasticproducts are standardized or homogeneous

Which is a feature of a perfectly competitive market?

price differences between firms producing the same product

significant barriers to entry into the industry

the industry's demand curve is perfectly elastic

products are standardized or homogeneous