A Perfectly Competitive Market Is One in Which

question 157

Multiple Choice

A perfectly competitive market is one in which:

• A) fully informed, price-taking buyers and sellers easily trade a standardized good or service.
• B) fully informed, price-making buyers and seller easily trade a standardized good or service.
• C) uninformed, price-taking buyers and sellers easily trade a standardized good or service.
• D) uninformed, price-making buyers and seller easily trade a standardized good or service.

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Definitions:

Coupon Rate

The yearly payment rate on a bond, expressed in percentage relative to its face value.

Yield

A measure often used in finance to indicate the earnings generated and realized on an investment over a particular period, expressed as a percentage of the investment's cost.

Price

The sum of money needed to buy a product, service, or property.

Coupon Bond

A bond that entitles the holder to receive a fixed interest payment (coupon) at regular intervals until maturity, at which point the principal is repaid.