Perfect Competition Is Characterized by Which of the Following

question 68

Multiple Choice

Perfect competition is characterized by which of the following?

• A) many buyers and many sellers
• B) few buyers and few sellers
• C) few buyers and many sellers
• D) a few companies that control the market

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Definitions:

Dollar Votes

A term used in economics to describe how consumers show their preferences and exert influence in the market by how they spend their money.

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.

Consumer Sovereignty

The concept that consumers have the ultimate control over what goods and services are produced by choosing what to purchase with their money.

Economically Most Efficient

A situation or method that yields the maximum output without wasting resources.