Prices in Factor Markets Are Primarily Determined By

question 20

Multiple Choice

Prices in factor markets are primarily determined by:

• A)government regulation.
• B)big business collusion.
• C)the interaction of business supply with household demand in the factor markets.
• D)the interaction of household supply with business demand in the factor markets.
• E)none of the above.

---

Definitions:

Regulation Prices

Regulation prices involve government-imposed limits on the prices that can be charged for goods and services in certain markets to protect consumer interests.

Unregulated Monopolist

A monopolist that operates without governmental restrictions or regulations, freely setting prices and output levels without external interference.

Market Efficiency

Market efficiency refers to the extent to which market prices fully reflect all available information, leading to an optimal allocation of resources.

Ideal Market

A theoretical or perfect market condition where there are many buyers and sellers, no barriers to entry, and complete access to information.