Firms in a perfectly competitive market: A. try to attract customers away from their competitors. B. sell homogeneous products. C. usually have large advertising budgets. D. sell a differentiated product. Solution sell homogeneous products Firstly, all competing firms sell identical products (product homogeneity). Secondly, all buyers are perfectly informed about the characteristics and price of the product (transparency). Thirdly, each firm has a relatively small market share. Fourthly, a single firm cannot significantly affect the market price and thus is to passively accept it (price-taker).