Which of the Following Conditions Define a Perfectly Competitive Market

question 52

Multiple Choice

Which of the following conditions define a perfectly competitive market?

• A)The transaction costs are very high.
• B)Information is available to participants at a high cost.
• C)The product is homogenous.
• D)There are limited number of buyers and sellers.

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Definitions:

Gains From Trade

The increase in utility or welfare that countries or individuals obtain by engaging in voluntary exchange of goods and services.

Price Differential

The difference in price between two related goods, markets, or levels of supply chain.

Rational Decision Maker

A person who uses logic and reasoning, weighing costs and benefits, to make choices that maximize their satisfaction.

Business Trip

A journey undertaken for work or professional purposes, often involving travel outside one's regular place of business.