Which of the following is NOT a characteristic of perfect competition?

  • A Supply and demand are equal
  • B Products are identical
  • C There is perfect knowledge
  • D There is no advertising
jamb 2021english-language

The correct answer is A. Supply and demand are equal

In perfect competition, the price is determined by the market forces of supply and demand, but they don't need to be equal at all times. Instead, the equilibrium price is established where supply and demand intersect.

The other three options—products being identical, perfect knowledge, and no advertising—are indeed characteristics of perfect competition.

Previous question Next question