Which of the Following Statements Correctly Describes a Competitive Market

question 84

Multiple Choice

Which of the following statements correctly describes a competitive market?

• A) Buyers and sellers negotiate prices before making exchanges.
• B) The market price for the same good varies from seller to seller.
• C) A single seller sometimes has the ability to dictate the market price.
• D) The market price is determined by the interaction of demand and supply.

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Definitions:

Output Contract

A legal agreement in which a seller agrees to sell all the production to a particular buyer, who in turn agrees to purchase the entire output.

Needs Contract

A contract or agreement tailored to address and fulfill specific needs of the parties involved.

Good Faith

Acting with honest intentions without seeking to take unfair advantage in a transaction or situation.

Rule Of Requirements

A principle in contract law that dictates a seller must supply only the quantity of goods that a buyer requires, no less and no more.