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Solution:
In a perfectly competitive market, there are several characteristics or conditions, including a large number of firms, homogenous products, perfect information, perfect mobility of resources, and free entry and exit of firms.
One of the key assumptions of perfect competition is that all firms in the market sell homogenous products, and consumers consider the products of all firms to be perfect substitutes.
In a perfectly competitive market, all firms are price takers, meaning they have to accept the market price and cannot influence it. Therefore, the demand curve faced by each firm is perfectly elastic or horizontal. There is no downward-sloping demand curve.
Option (c) is not a characteristic of a perfectly competitive market.
Correct option is (c)