Which of the Following Is True of a Competitive Market

question 227

Multiple Choice

Which of the following is true of a competitive market?

• A)​The rules of supply and demand do not apply to it.
• B)​Buyers and sellers have little market power.
• C)​Each buyer's or seller's effect on market price is substantial.
• D)​Few sellers offer similar products.

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Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Prices

The amount of money required to purchase goods or services.

New Product Line

A series of related products developed by a company, aimed at capturing a larger share of the market by appealing to different consumer needs.

Car Washes

Businesses specializing in cleaning the exterior and, in some cases, the interior of vehicles, offering a range of services from basic washes to detailed cleaning.