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:

Other-race Effect

The cognitive tendency to more easily recognize faces of the race that one is most familiar with, which often leads to difficulty in distinguishing faces from races less encountered.

Stereotyping

The act of generalizing attributes, characteristics, or behaviors to all members of a particular group without considering individual differences.

Ingroup Bias

The tendency to favor members of one's own group over those from different groups, often leading to prejudiced attitudes or discrimination.

Selective Attention

The cognitive process of focusing on a particular object in the environment for a certain period of time while ignoring irrelevant information that is simultaneously occurring.