Which Characteristic of Competitive Markets Is Mainly Responsible for Ensuring

question 64

Multiple Choice

Which characteristic of competitive markets is mainly responsible for ensuring that prices will be kept low?

• A) many buyers
• B) many sellers
• C) similar goods
• D) easy entry into and exit from the market
• E) differentiated goods

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Definitions:

Specific Invoice Method

A method used in accounting to record the cost of goods sold based on the specific cost of individual items.

Large Quantities

Refers to the purchasing or production of goods in bulk amounts, often at a reduced cost per unit.

Low-Cost Goods

Products that are sold at relatively low prices compared to other similar products in the market.

Consignor

The one who consigns merchandise to the consignee.