Question

Each of the following is a condition necessary for the existence of perfect competition EXCEPT:



Group of answer choices

buyers must have easy access to information and prices available

the product must have many sellers and buyers available.

the product being offered by one competing firm must be identical to those offered by other firms

prohibitive barriers to entry in the industry must exist

Answer 1

The correct answer is:

**prohibitive barriers to entry in the industry must exist**

This statement is not a condition necessary for the existence of perfect competition. In fact, one of the key characteristics of perfect competition is that there are low or no barriers to entry, allowing new firms to enter the market freely.