Choose the statement that is correct. a. perfect competition arises if the minimum efficient scale of a single producer is large relative to the demand for the good or service. b. in a perfectly competitive market, sellers but not buyers are well informed about prices. c. perfect competition arises if each firm is perceived to produce a good or service that has no unique characteristics. d. in a perfectly competitive market, barriers to entry exist.

Letter C is the correct answer.

Perfect competition is characterized by the selling of identical products from different firms, the absence of restrictions on entry into the market, the absence of advantages to established firms over the ones that are entering the market now, both buyers and sellers being well informed about prices. Perfect competition arises if the minimum efficient scale of a single producer is small if compared to the existing demand for the good or service.