Question

Which is not a characteristic of a competitive market? a large number of firms offering similar products O Firms have some degree of control over prices. O no product differentiation between firms little or no barriers to entry

Answer 1

Question 1) Option B - firms have some degree of control over prices.

In perfect competition, all firms are price takers, that is, they take the price of their products as given and sell their products accordingly. They have no control over the market price.

All other options are characteristics of perfect competition which are, there are large number of firms offering similar products, no product differentiation between firms and little or no barriers to entry.

Question 2)

Competitive Markets: No one buyer or seller can control prices, identical homogeneous goods.

Competitive markets are those market where the price is given and no one has control on the market price. The sellers sell goods which are exactly same so nobody can differentiate one seller's good from another.

Monopolistically competitive markets: Differentiated goods.

Monopolistically competitive market is where there are many sellers but each seller differentiates their good according to different advertisement, brand name, colour, quality of the good, etc. They can charge different prices accordingly.

Both market structures: Few, if barriers to entry, Many buyers and sellers.

In both the markets there is few barriers to entry and many buyers and sellers oeprating so these two characteristics fall under both market structures.