Perfect Competition Is Characterized by

question 136

Multiple Choice

Perfect competition is characterized by

• A) many buyers and many sellers.
• B) few buyers and few sellers.
• C) few buyers and many sellers.
• D) many buyers and few sellers.
• E) a few companies that control the market.

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Definitions:

Exchange Rate

the price at which one currency can be exchanged for another, influencing international trade and investment.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Demand

The desire and ability of consumers to purchase goods or services at given prices.

Supply

The total amount of a product or service that is available for purchase at any given price.