In a market characterized by , all firms must be small and the number of firms in the industry must be large. A. oligopoly B. stable competition C. monopolistic competition D. perfect competition

D. perfect competition

Explanation:

Perfects competition is a theoretical market structure where competition among firms is at the highest level possible. It is also known as pure competition. Due to the high level of competition, there are no dominant firms. Each firm will have a small proportion of the market share. Other characteristics of a pure competition market include,

1.  All firms sell a homogeneous or identical products

2. There are barriers to entry or exiting in the market

3.  All firms are price taker; no single entity can influence the prices

4.  There many very firms and seller in the markets

5.   Buyers have sufficient knowledge about the sellers and the market.

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