An Assumption of a Competitive Market Is That Both Buyers

question 60

Multiple Choice

An assumption of a competitive market is that both buyers and sellers are price takers. When we go to the mall to shop for clothing or to the grocery to buy food, what do we usually observe?

• A) Both buyers and sellers are usually price takers.
• B) Buyers are often price takers, but sellers are usually price makers.
• C) Buyers are often price makers, but sellers are usually price takers.
• D) Both buyers and sellers are usually price makers.

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Definitions:

Battle Of The Forms

A legal conflict that arises when two parties conducting business each provide their own sales contracts, which contain conflicting terms.

Fine Print

Small, often difficult to read text in contracts or agreements that can contain important legal obligations or information.

Merchant

An individual or business entity engaged in the sale and purchase of goods for profit.

Consideration

A legal concept that refers to something of value exchanged between parties to form a binding contract.