Option 1 -> In perfect competition, firms are price takers with no control over price.
Option 2 -> Correct characteristic; firms face perfectly elastic demand at market price.
Option 3 -> Correct characteristic; no barriers to entry or exit exist.
Option 4 -> Correct characteristic; homogeneous products eliminate need for advertising.
Hence, Option 1 -> In perfect competition, individual firms are price takers, not price makers. The market determines the equilibrium price through aggregate demand and supply, and each firm must accept this price. Firms have zero control over price because any attempt to charge above the market price results in zero sales (buyers switch to other identical sellers), and charging below market price is irrational as they can sell their entire output at the prevailing market price. This creates the perfectly elastic (horizontal) demand curve faced by each firm. -> correct