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Question
Which of the following is not a characteristic feature of a perfectly competitive market?
Options
Very large number of sellers (firms)
Goods of the firms are perfect substitutes for one another
Perfect knowledge among buyers
Firms face downward-sloping demand curve
MCQ
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Solution
Firms face downward-sloping demand curve
Explanation:
In a perfectly competitive market, firms face a horizontal demand curve because they are price takers. A downward-sloping demand curve is characteristic of imperfect competition, where firms can influence prices.
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