Which of the Following Statements Is True About a Competitive

question 253

Multiple Choice

Which of the following statements is true about a competitive market? A competitive market

• A) must have a physical location.
• B) includes markets for goods and services but not for inputs.
• C) has so many buyers and sellers that no one can influence the price.
• D) has one seller competing to sell his or her product.
• E) has a handful of sellers but always has many buyers.

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Definitions:

Noncompetition Clause

A contractual term preventing one party from competing directly with another party for a certain period and within a specified geography.

Software Agreement

A legal contract specifying the terms of use, distribution, and ownership of software between the provider and the user.

Injunction

A court order requiring an individual to do or refrain from doing a particular act to prevent harm or injustice.

Trade Secret

Proprietary information used by a business that is not publicly known and is subject to efforts to maintain its secrecy, giving the business a competitive advantage.