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Following is not the feature of perfect competition:

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Question

Following is not the feature of perfect competition:

Options

  • Very large number of buyers and sellers

  • Homogeneous product

  • Free entry or exit of firms

  • Selling costs

MCQ
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Solution

Selling costs

Explanation:

Under perfect competition, there are no selling costs since the items are homogeneous and the same across enterprises. Firms do not need to differentiate or sell their products because they are all the same, and consumers are well-informed. 

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Chapter 5: Nature and Structure of Markets - QUESTIONS [Page 146]

APPEARS IN

Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 5 Nature and Structure of Markets
QUESTIONS | Q 2. | Page 146
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 5 Meaning and Types of Markets
Exercise | Q 2. | Page 113

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