One of the Characteristics of the Perfectly Competitive Market Is

question 65

Multiple Choice

One of the characteristics of the perfectly competitive market is:

• A) a small number of large firms.
• B) firms that sell a heterogeneous product.
• C) sellers and buyers both can increase the price on the market.
• D) there is a large number of small firms.

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Definitions:

Policymakers

Individuals or groups responsible for making decisions and establishing regulations that guide the economic, social, and political governance of a society.

Marginal Benefit

The plus in satisfaction or usefulness someone gets by consuming an extra unit of a given product or service.

Socially Optimal

A situation in economics where resources are allocated in the most efficient way from a societal perspective.

Pigouvian Tax

A tax imposed on activities that generate negative externalities, intended to correct an undesirable or inefficient market outcome by being equal in value to the externality.