Question

Which of the following is a characteristic of a perfectly competitive market?

1.Firms are price setters
2.There are few sellers in the market
3.Firms can exit and enter the market freely
4.All of these​

Answer 1

Answer:

A perfectly competitive market is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entryand exit, and perfect information about the price of a good.

Explanation:

hope its helpful and read carefully

your answer is All of these

Answer 2

Of the following, option 3 i.e. firms can exit and enter the market freely is a characteristic of a perfectly competitive market.

In perfectly competitive market firms are price takers. And, there are many sellers as well as many buyers in the market such that no single firm can influence the price of the market.

The price in perfectly competitive market is determined by the forces of market i.e. demand and supply.