Question

Perfect competition in neoclassical economics assumes ALL BUT WHICH of the following?

a) Homogeneous products
b) Perfect information
c) Many buyers and sellers
d) Significant barriers to entry

Answer 1

Perfect competition in neoclassical economics assumes all the following except significant barriers to entry. In perfect competition, there are many sellers, homogeneous products, and perfect information. However, there are no significant barriers to entry in perfect competition, meaning that firms can freely enter and exit the market.

Step-by-step explanation:

Perfect competition in neoclassical economics assumes all the following except significant barriers to entry. In perfect competition, there are many sellers, homogeneous products, and perfect information. However, there are no significant barriers to entry in perfect competition, meaning that firms can freely enter and exit the market.