Why Does Market Price Prevail in a Perfectly Competitive Market

question 15

Multiple Choice

Why does market price prevail in a perfectly competitive market?

• A) because there are few sellers
• B) because the market is unregulated
• C) because there are distinctive products
• D) because no one has market power

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Definitions:

Werewolves

Mythological or folkloric human beings with the ability to transform into wolves, often said to occur under a full moon.

Unstated Conclusion

An implied conclusion in an argument that is not explicitly expressed by the author but can be inferred from the premises.

Rotten Avocados

Avocados that have deteriorated beyond the point of edibility due to overripening, bacteria, or fungal decay.

False Premises

Statements or grounds in an argument that are not true or are misleading.