A Key Characteristic of a Competitive Market Is That

question 25

Multiple Choice

A key characteristic of a competitive market is that

• A)government antitrust laws regulate competition.
• B)producers sell nearly identical products.
• C)firms minimize total costs.
• D)firms have price setting power.

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Definitions:

Maximize Profit

The process of increasing one's financial gain to the highest possible level given the constraints of the market.

Productivity

The efficiency with which input resources are converted into output, often measured as the ratio of output to input over a specific period.

Marginal Revenue Product Curve

A graphical representation showing how the additional revenue of a firm changes with the employment of an extra unit of input in the production process.

Factor of Production

Resources used in the production of goods and services, typically classified into land, labor, capital, and entrepreneurship.