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14 December, 01:34

Which of the following is not a characteristic of a perfectly competitive market structure? a. There are a very large number of firms that are small compared to the marketb. All firms sell identical productsc. There are restrictions on exit of firmsd. There are no restrictions to entry by new firms

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  1. 14 December, 02:40
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    c. There are restrictions on exit of firms

    NOT perfectly competitive market

    businees can either enter or exit the market without restriction PCM

    Explanation:

    a. There are a very large number of firms that are small compared to the market

    That is the main caracteristic of a perfectly competitive market, because there are a lot of small firm none can influence in the price or quantity

    b. All firms sell identical products

    Also a caracteristic of a competitive market, if the product were subtancially different, then it be possible to influence the price and demand of the diferent product

    d. There are no restrictions to entry by new firms
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