Which of the following is a characteristic of a perfectly competitive market? A. a large number of firms in a market B. selling a standardized product C. no barriers to entry D. all of the above

Answer: Option D

Explanation:

A. In a perfectly competitive market the number of firms is so large that no individual firm can affect the price. Thus, A is correct.

B. All firms in a perfect competition sells same product without any differentiation thus no firm can charge extra price. Thus, B is correct.

C. There are no barriers to entry and exit in the market therefore no firm can earn abnormal profits in long run. Thus, C is correct.

Hence all the options given are characteristics of perfect competition.