Day: June 21, 2025

Which ONE of the following is associated with the conditions of perfect competition?

Select ONE answer:

1. Suppliers are price-makers
2. Differentiated products
3. Consumers lack influence over market price
4. Heavy advertising helps gain extra market share

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Suppliers are price-takers meaning that they can sell as much as they supply but only if they sell at the market-determined equilibrium price. Differentiated products and advertising are market imperfections, creating imperfect rather than perfect competition.
4. Not correct

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