Of the Following Characteristics of Competitive Markets, Which Are Necessary

question 8

Multiple Choice

Of the following characteristics of competitive markets, which are necessary for firms to be price takers?
(i) many sellers
(ii) goods offered for sale are largely the same
(iii) firms can freely enter or exit the market

• A)(i) and (ii) only
• B)(iii) only
• C)(ii) and (iii) only
• D)all are necessary

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Definitions:

Significantly Different

A statistical term used to describe a result that is unlikely to have occurred by chance alone, as determined by a predetermined significance level.

ANOVA

Short for Analysis of Variance, a statistical method used to compare means of three or more samples.

Hypothesized Distribution

A theoretical distribution used to make inferences about a population based on sample data.

Acceptance Region

The acceptance region in statistical hypothesis testing is the range of values for which the null hypothesis is not rejected, based on the chosen significance level.