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A.
Adequate knowledge of existing prices
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B.
The influence on prices by individual economic units
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C.
The restriction in terms of movement of goods and services
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D.
The administration of a centralized price system
Correct Answer: Option A
Explanation
A perfectly competition has the following characteristics:
- There are many buyers and sellers in the market.
- Each company makes a similar product.
- Buyers and sellers have access to perfect information about price.
- There are no transaction costs.
- There are no barriers to entry into or exit from the market.
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