Which of the Following Is a Characteristic of a Competitive

question 523

Multiple Choice

Which of the following is a characteristic of a competitive market?

• A)There are many buyers but few sellers.
• B)Firms sell differentiated products.
• C)There are many barriers to entry.
• D)Buyers and sellers are price takers.

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Definitions:

Monopolists

Individuals or entities that are the sole providers of a particular product or service, allowing them control over market prices and supply.

Perfectly Competitive

A market structure where there are many buyers and sellers, all selling identical products, and no single entity can influence the market price.

Market Power

The ability of a firm or group of firms to control prices and output levels in a market.

Price Elastic

Describes a situation where the quantity demanded or supplied of a good changes significantly due to changes in its price.