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

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Definitions:

Disposable Income

Income remaining for a person to spend or save after all taxes have been paid.

Disposable Income

The amount of money that households have available for spending and saving after income taxes have been taken out.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing, and a major component of GDP.

Consumption Function

A representation in economics indicating the relationship between total consumer expenditures and household income levels.