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

In a competitive market, one of the main characteristics is that buyers and sellers are price takers, not price makers. This means that individual buyers or sellers have no power to influence the market price; instead, they accept the prevailing market price for the goods or services. Competitive markets feature many participants where the supply and demand dynamics determine the price.

Standardized goods, no transaction costs, and full information are indeed characteristics of competitive markets. Standardized goods imply that products are identical and interchangeable, allowing consumers to make decisions based purely on price. The absence of transaction costs means that participants can freely enter and exit the market without incurring additional costs, facilitating competition. Full information ensures that all participants have access to the same information regarding prices and quality, allowing for informed decision-making.

Thus, the assertion that buyers are price makers contradicts the fundamental nature of competitive markets. In such markets, buyers lack the ability to set prices, thereby reinforcing the concept that they are price takers.