A Market Is Said to Be Perfectly-Competitive When

question 4

Multiple Choice

A market is said to be perfectly-competitive when

• A)there is no opportunity costs incurred by the vendor nor by the buyer.
• B)the market may be dominated by one or two major companies, but there are many smaller companies also in the market.
• C)there is a homogeneous product, equivalent buying and selling prices, and no individual buyers or sellers can affect those prices by their own actions.
• D)there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions.
• E)there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions, but there are no opportunity costs for buyers or sellers.

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Definitions:

Unit Of Measure

A standard quantity used in measuring and expressing the quantity of an element, substance, or phenomenon.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies the degree to which these points differ from the mean.

Distribution Plans

Strategies or policies set by a company or organization for delivering goods or services to customers, encompassing logistics, transportation, and channels of distribution.

Initial Setup Costs

The expenses incurred during the setting up of a new business, project, or system before it is operational.