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Category - Economics

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Which of the following conditions is not necessary for a perfect market?
  1. No barrier to entry or exit
  2. All actors have total information about the market.
  3. Equal access to technology
  4. The absence of regulation
Explanation
Answer: D - A perfect market does not necessarily require the absence of regulation. A perfect market is not the same as a free market. A perfect market is a market that is perfectly competitive. Regulation makes a market imperfect only if it favors one actor over another.
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