Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Which of the following is not a characteristic of perfect competition?
Options:
Advertising to keep consumers well informed
Perfect mobility of factors of production
Free entry and exit of firms
Products that are perfect substitutes
Correct Answer:
Advertising to keep consumers well informed
Explanation:
There is perfect knowledge to consumers. They are well informed. No advertising is required in a perfectly competitive market.