Question

Which statement is not true of a perfectly competitive market?

a.Sellers always advertise extensively to compete for market share.
b.There are many buyers and sellers of identical products.
c.Sellers act as price-takers, they react to the price rather than set the price.
d.Buyers are able to buy as much as they want at the market price.

Answer 1

In a perfectly competitive market, sellers do not always advertise extensively to compete for market share.

Step-by-step explanation:

In a perfectly competitive market, one statement that is not true is that sellers always advertise extensively to compete for market share.

In a perfectly competitive market, sellers offer identical products and act as price-takers, meaning they react to the price rather than set the price.

Additionally, buyers are able to buy as much as they want at the market price.

However, sellers do not necessarily have to advertise extensively to compete for market share.