Which of the Following Describes a Characteristic of a Perfectly

question 113

Multiple Choice

Which of the following describes a characteristic of a perfectly competitive market?

• A)There are many buyers but few sellers.
• B)There are many sellers but few buyers.
• C)There are many buyers and sellers.
• D)Equilibrium is achieved when demand for the product sold in the market equals the supply.

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Definitions:

Professional Fund Managers

Professional fund managers are individuals or entities specialized in managing investment portfolios on behalf of clients, striving to achieve specified investment objectives through strategic asset allocation and security selection.

Outperform

A term used in the finance industry to describe an investment that is expected to perform better than the market average or a benchmark index.

Rational Traders

Investors who make decisions based on logic, available information, and analysis rather than emotion or guesswork.

Arbitrage

The practice of taking advantage of a price difference between two or more markets, buying low and selling high to profit from the temporary difference.