What Happens in a Competitive Market

question 2

Multiple Choice

What happens in a competitive market?

• A) There is only one seller of the product.
• B) Each seller of the product is free to set the price of his product.
• C) Each seller attempts to compete with other sellers, causing fewer sellers in the market.
• D) There are so many buyers and sellers that each has a negligible impact on price.

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Definitions:

Mating Tooth

In gear terminology, a tooth on one gear that engages with a corresponding tooth on a mating gear to transmit motion.

Addendum

In gear terminology, the radial distance between the pitch circle and the top of the teeth.

Dedendum

The downward extension from the pitch circle to the bottom of the gear tooth in a gear wheel.

Clearance

The space or distance between two objects or parts, designed to allow for freedom of movement, assembly, or avoid interference.