Which of the following is NOT a characteristic of a perfectly competitive market?

In a perfectly competitive market, firms are considered price takers, which means that they have no individual influence on the market price. This stems from the nature of the many buyers and sellers in the market, each of whom sells a homogeneous product. Since there are numerous participants, no single firm can affect the overall price; rather, the market price is dictated by the overall supply and demand dynamics.

The characteristics that define a perfectly competitive market include homogeneous products, which ensure that consumers perceive no difference between products from different sellers, and the presence of many buyers and sellers, ensuring competition. Furthermore, the freedom of entry and exit allows new firms to enter the market when profits are present and exit when they incur losses. These elements contribute to the efficiency and competitiveness of the market, reinforcing the idea that no single firm can influence prices in a meaningful way.