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:

Corporate Insiders

Individuals within an organization, such as directors, officers, or major shareholders, who have access to private information about the company.

Sarbanes-Oxley Act

A U.S. federal law established to protect investors from fraudulent financial reporting by corporations.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and statement of cash flows.

Securities and Exchange Commission

The Securities and Exchange Commission (SEC) is a U.S. federal agency responsible for regulating the securities industry and protecting investors by enforcing laws against market manipulation.