A perfectly competitive market in an economy is categorized by the following features.

(A) Firms are price-takers.

(B) Average revenue is equal to market price.

(C) Market is perfectly inelastic.

(D) Marginal revenue is equal to market price.

Choose the correct answer from the options given below:

Option 1 -> Firms are price-takers (TRUE), Average revenue equals market price (TRUE), and Marginal revenue equals market price (TRUE) are all correct characteristics of perfect competition.

Option 2 -> Includes statement (C) which is incorrect - perfect competition is NOT characterized by perfectly inelastic markets.

Option 3 -> Includes statement (C) which is incorrect - perfect competition features highly elastic individual firm demand, not perfectly inelastic markets.

Option 4 -> Excludes statement (A) which is a fundamental characteristic of perfect competition, and incorrectly includes statement (C).

Hence, Option 1: (A), (B) and (D) only -> In perfect competition: (A) Firms cannot influence price and must accept market price (price-takers); (B) Average Revenue (TR/Q = P×Q/Q = P) equals market price; (D) Marginal Revenue equals price because the firm faces a perfectly elastic demand curve at market price. Statement (C) is INCORRECT - perfect competition features perfectly elastic demand for individual firms, not perfectly inelastic markets. A perfectly inelastic market would mean quantity demanded doesn't respond to price changes, which contradicts competitive market dynamics. -> correct