Question:medium

Which of the following are characteristics of a perfectly competitive market? A. There is perfect information in the market.
B. The market price is determined by the collective interaction of supply and demand.
C. Each firm has significant market power to influence prices.
D. Firms in a perfectly competitive market earn normal profit in the long run.
Choose the correct answer:

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In perfect competition, firms are price takers and earn normal profit in the long run.

Updated On: May 12, 2026

A, B, and D only
B, C, and D only
A, C, and D only
A, B, C, and D

Show Solution

The Correct Option is A

Solution and Explanation

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