Which of the Following Most Closely Resembles a Perfectly Competitive

question 26

Multiple Choice

Which of the following most closely resembles a perfectly competitive market?

• A) the airline industry
• B) the soft drink industry
• C) the wheat market
• D) long-distance telephone service

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Definitions:

Crude Oil

A natural, unrefined petroleum product composed of hydrocarbon deposits.

OPEC

The Organization of Petroleum Exporting Countries, an intergovernmental organization of oil-producing countries that aims to manage the supply of oil to stabilize prices and ensure steady earnings.

Price Ceiling

A government-imposed maximum price that can be charged for a good or service, intended to protect consumers from high prices.

Market Demand

The aggregate of a good or service that each consumer in a market is eager and qualified to purchase at differing prices.