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Which of the following is not a feature of perfect competition?
Answer & Solution
Correct Answer:
Option
B
Small number of buyers and sellers is not a feature of perfect competition. These are the three essential features of perfect competition: The number of buyers and sellers in the market is very large. These buyers and sellers compete among themselves. Due to the large number, no buyer or seller influences the demand or supply in the market.
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Login1.large numbers of buyers & sellers
2.free entry & free exit for firms
3.absence of artificial restrictions
4.presence of artificial restrictions