Which of the Following Is a Defining Characteristic of All

question 34

Multiple Choice

Which of the following is a defining characteristic of all perfectly competitive markets?

• A)Each firm in the market faces a perfectly inelastic demand curve.
• B)The market demand curve is perfectly elastic.
• C)All firms sell the same standardized product.
• D)Consumers display strong brand loyalty.

---

Definitions:

Slope

In mathematics and economics, the measure of the steepness or incline of a line, indicating the rate of change of one variable with respect to another.

Indifference Curves

A graph showing different bundles of goods between which a consumer is indifferent, illustrating preferences and trade-offs.

Budget Constraint

The constraint on the collection of goods or services a consumer is able to purchase, determined by their income and the cost of those goods or services.

Utility

A measure of satisfaction or happiness that consumers derive from consuming goods and services.