Which is not a characteristic of perfect competition?

A. No barriers to entry
B. Normal profits
C. Positive economic profits
D. Identical products
E. Perfect information

**thank you! :)

Question

Which is not a characteristic of perfect competition?

A.	No barriers to entry
B.	Normal profits
C.	Positive economic profits
D.	Identical products
E.	Perfect information

**thank you! :)

jim_thompson5910 · Answer

your thoughts on this?

anonymous · Answer

umm so there are no barriers i believe  (like 90% sure?)

jim_thompson5910 · Answer

yeah that IS a characteristic of perfect competition

anonymous · Answer

and i know that there's the identical product thing, so that's a characteristic right?

jim_thompson5910 · Answer

yeah homogenous products/services

jim_thompson5910 · Answer

A and D are out

anonymous · Answer

and i think there's perfect information right? because they know what they are selling/buying?

jim_thompson5910 · Answer

yep, symmetric info

anonymous · Answer

yay! but i'm not sure about the last two choices :/

jim_thompson5910 · Answer

read this page http://www.economicsonline.co.uk/Business_economics/Perfect_competition.html

anonymous · Answer

ohh, so they make normal profits? so the answer would be positive economic profits? since that is not a characteristic?

jim_thompson5910 · Answer

correct

anonymous · Answer

yay! thank you! :)

jim_thompson5910 · Answer

np