Which of these is a characteristic of pure competition?

A.

There are many government regulations on business transactions,

B.

There are no substitutes for the goods offered for sale,

C.

There are no barriers to new firms entering the market.

D.

There are many obstacles to consumer knowledge about products,

The correct answer is letter C.

Explanation: Perfect competition is an ideal market situation where there are a lot of sellers and a lot of buyers. This scenario would favor a natural equilibrium in prices through the relationship between supply and demand.

Also called pure competition, perfect competition is a concept that is not true in the real world, and is more of a theoretical model than a practical one.