Which of the Following Is a Characteristic of a Competitive

question 3

Multiple Choice

Which of the following is a characteristic of a competitive market?

• A)There are no transactions costs.
• B)There are an infinite number of buyers and sellers, none of whom has any market power.
• C)There are no taxes.
• D)All of the above are characteristics of a competitive market.

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Definitions:

Economics Majors

Students specializing in the study of economics, which is the social science that analyzes the production, distribution, and consumption of goods and services.

Human Capital Investment

Spending on education, training, health, and other personal capacities that improve an individual's productivity and quality of life.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of firms to adjust to market changes.