A. Adequate knowledge of existing prices
B. The influence on prices by individual economic units
C. The restriction in terms of movement of goods and services
D. The administration of a centralized price system
Correct Answer:
Option A = Adequate knowledge of existing prices
Explanation
A perfectly competition has the following characteristics:
- There are many buyers and sellers in the market.
- Each company makes a similar product.
- Buyers and sellers have access to perfect information about price.
- There are no transaction costs.
- There are no barriers to entry into or exit from the market.
