?

Microeconomics

Free Version

Upgrade subject to access all content

Moderate

Assumptions of Perfect Competition

MICRO-3PCSX1

All of the following statements are assumptions of the model of perfect competition. Three of them are, in a way, very similar to each other but one of them is quite distinct.

So which of these assumptions is most unlike the other ones?

A

The market is made up of many small firms.

B

There is free entry into the market.

C

Goods in the market are homogenous.

D

Firms in the market face “horizontal demand curves”.