All of the following describes conditions necessary for existence of a perfect market EXCEPT

Analyze the question: The word "EXCEPT" means three options are conditions of a perfect market, and one is NOT. We need to find the odd one out.

Concept: Features of a perfect market

1. Homogeneous goods: all products are identical, so buyers have no reason to prefer one seller over another.
2. Perfect knowledge: buyers and sellers know the prices and conditions everywhere in the market.
3. Large number of buyers and sellers: no single person can influence the price.
4. Free entry and exit: firms can join or leave the market freely.
5. Portability (mobility) of goods and factors: goods can be moved easily to where they are needed.

Solution: Check each option

• A. Lack of homogeneity of goods: A perfect market needs homogeneous goods, so a lack of homogeneity (differentiated products) is the opposite of what is required. This is NOT a condition.
• B. Perfect knowledge: This is a required condition.
• C. Large buyers and sellers: This means a large number of buyers and sellers, which is a required condition.
• D. Portability of goods: Goods can be moved easily, which is generally accepted as a supporting condition.

Answer: Option A is the exception, so it is the correct choice.

Exam tip: When you see "EXCEPT," test each option and look for the one that contradicts the concept. Here, "lack of" is a clue because it reverses a real feature (homogeneity). Remember perfect market = same goods, full information, many traders, free movement.