Final answer:
In a perfectly competitive environment, there are many substitutes.
Step-by-step explanation:
Perfect competition is a market structure with the following conditions:
- Many firms produce identical products
- Many buyers and sellers are available
- Sellers and buyers have all relevant information to make rational decisions about the product
- Firms can enter and leave the market without any restrictions, allowing for free entry and exit
In a perfectly competitive environment, there are many substitutes. This means that consumers have multiple options to choose from, as there are numerous firms producing identical products. Each firm in a perfectly competitive market is a price taker, meaning they have no control over the price and must accept the market-determined price.