While Very Few Markets Are "Purely Competitive" According to the Strict

question 20

Multiple Choice

While very few markets are "purely competitive" according to the strict economics definition,market analysts often use competition as

• A)the benchmark from which to judge other market settings.
• B)the standard of an inefficient market structure.
• C)an example of a market with poor entry and exit conditions.
• D)an example of a market with asymmetric information.

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Definitions:

Salary Workers

Individuals who receive a fixed regular payment, often monthly, from their employer, regardless of the number of hours worked.

Monopsonist

An economic situation where there is only one buyer in the market, giving the buyer substantial power over prices and terms with suppliers.

Purely Competitive

A market structure characterized by many buyers and sellers, all of whom have little to no influence on the market price of goods and services.