Examlex
Which one of the following describes an ECN?
Market Price
The actual selling price of a good or service in the marketplace, determined by supply and demand.
Price Takers
Market participants who accept prevailing prices because they have no power to influence the market price due to their small market share.
Perfect Competition
A market structure characterized by a large number of small firms, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.
Diminishing Marginal Returns
A principle stating that as more of a variable input is added to a fixed input, the additional output from each new unit of input will eventually decrease.
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