In a Perfectly Competitive Market, Both Buyers and Sellers Take

question 86

True/False

In a perfectly competitive market, both buyers and sellers take price as given.

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Definitions:

Indifference Curves

A graph showing a series of lines that represent different bundles of goods between which a consumer is indifferent.

Diminishing Marginal

Refers to a principle where the marginal gain (such as utility or productivity) from an additional unit decreases as more units are consumed or produced.

Transitivity

Transitivity in decision-making implies that if a person prefers option A over B, and B over C, then the person should also prefer A over C, forming a consistent order of preferences.

Completeness

In decision theory, the idea that every set of choices can be ranked in an order of preference, allowing for a consistent choice under different scenarios.