Which of the Following Markets Is Characterized by the Following

question 49

Multiple Choice

Which of the following markets is characterized by the following: many buyers and sellers, a homogeneous product, easy entry into and exit from the industry, and all firms are price takers?

• A) perfectly competitive market
• B) monopolistic competition
• C) monopoly
• D) oligopoly

---

Definitions:

Compounded Quarterly

Refers to the process of calculating interest on an investment or loan where the interest is added to the principal amount four times a year.

Interest

Money paid at a particular rate for the use of borrowed funds or for delaying the repayment of a debt.

Ethnic Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Praxis

The process by which a theory, lesson, or skill is enacted, embodied, or realized in the real world; often considered the practice or application of a learned skill.