) There must be perfect information, so that buyers and sellers know everything they need to make ar informed decision. O There must be no barriers to entry, so that anyone may buy or sell in the market. O There must be many buyers and sellers, so that none of them have market power. O There must be no externalities, so that buyers and sellers realize all the benefits and costs of the goc market. O There must be heterogeneous goods, so that buyers and sellers have a choice of product characteris

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
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Which of the following is NOT a requirement for a market to be perfectly competitive?

There must be perfect information, so that buyers and sellers know everything they need to make an
informed decision.
There must be no barriers to entry, so that anyone may buy or sell in the market.
There must be many buyers and sellers, so that none of them have market power.
There must be no externalities, so that buyers and sellers realize all the benefits and costs of the good in the
market.
O There must be heterogeneous goods, so that buyers and sellers have a choice of product characteristics.
Transcribed Image Text:There must be perfect information, so that buyers and sellers know everything they need to make an informed decision. There must be no barriers to entry, so that anyone may buy or sell in the market. There must be many buyers and sellers, so that none of them have market power. There must be no externalities, so that buyers and sellers realize all the benefits and costs of the good in the market. O There must be heterogeneous goods, so that buyers and sellers have a choice of product characteristics.
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