Which statement is NOT a characteristic of a perfectly competitive industry?

A) Firms seek to maximize profits.
B) Profits may be positive in the short run.
C) There are many firms.
D) Products are differentiated.

Differentiated Products

Products that are distinguished from similar products by unique characteristics, branding, or quality, allowing companies to compete beyond price.

Perfectly Competitive

A descriptor of a market scenario where firms face many competitors, sell identical products, and have no control over the market price, leading to optimal efficiency and resource allocation.

Short Run

A time period in which at least one input, like plant size, is fixed and cannot be changed by the firm.