What assumptions are necessary for a market to be perfectly​ competitive? In light of what you have learned in this​ chapter, why is each of these assumptions​ important? For a market to be perfectly​ competitive, A. only a few firms may produce​ output, firms must have market​ power, and firms must produce a homogenous product. B. firms must be price​ takers, firms must produce a homogeneous​ product, and firms must be able to easily enter and exit the market. C. only one firm can produce​ output, no close substitutes may​ exist, and firms must not be able to enter the market. D. only one firm can have access to a key​ input, the government must regulate entry of new​ firms, and the​ long-run average cost of production must be decreasing. E. firms must have market​ power, firms must produce a differentiated​ product, and firms must be able to easily enter and exit the market.