One of the Defining Characteristics of a Perfectly Competitive Market

question 91

Multiple Choice

One of the defining characteristics of a perfectly competitive market is

• A)a small number of sellers.
• B)a large number of buyers and a small number of sellers.
• C)a standardized product.
• D)significant advertising by firms to promote their products.

---

Definitions:

Profit-Maximizing Condition

A state where a firm's marginal cost is equal to its marginal revenue, leading to the highest possible profit.

Resource Use

Involves the allocation and utilization of resources such as capital, labor, and materials efficiently in the production of goods and services.

Resource Demand

The need or desire for specific resources in order to produce goods or services within an economy.

Product Market

The market where end products or services are made available to consumers, businesses, and governmental bodies.