The Four Important Characteristics That Define a Perfectly Competitive Market

question 101

Multiple Choice

The four important characteristics that define a perfectly competitive market are:

• A) a standardized good, full information, no transaction costs, and price-taking participants.
• B) standardized information, a finished good, no transaction costs, and price-making participants.
• C) a standardized good, the same information for buyers and sellers, low transaction costs, and price-taking participants.
• D) a standardized good, full information, no transaction costs, and price-making participants.

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Definitions:

Danger Pay

Additional compensation provided to employees who work in conditions that are considered hazardous or risky.

Employment Standards Laws

Regulations that define the rights and responsibilities of employees and employers in the workplace.

Minimum Wage

The lowest legal hourly rate of pay that an employer can compensate workers, set by government law or regulation.

Tips

Discretionary payments given to service providers by customers, typically as a gesture of thanks for good service.