A perfectly competitive market is one in which:Multiple Choicea. fully informed, price-taking buyers and sellers easily trade a standardized good or service. b. fully informed, price-making buyers and seller easily trade a standardized good or service. c. uninformed, price-taking buyers and sellers easily trade a standardized good or service. d. uninformed, price-making buyers and seller easily trade a standardized good or service.

Question

Business

Briley Barrett

28 May, 02:43

A perfectly competitive market is one in which:Multiple Choicea. fully informed, price-taking buyers and sellers easily trade a standardized good or service. b. fully informed, price-making buyers and seller easily trade a standardized good or service. c. uninformed, price-taking buyers and sellers easily trade a standardized good or service. d. uninformed, price-making buyers and seller easily trade a standardized good or service.

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Answers (1)

Know the Answer?

Giana Strong · Answer 1

A.

Explanation:

Characteristics of a Perfectly Competitive Market:

-Very Large Number of Sellers and Buyers.

Each firm produces an extremely small percent of total market supply.

-Identical (Homogeneous) Product.

The product sold by one firm is identical to that sold by another firm.

-Easy Entry/Easy Exit.

Easy to enter this industry because costs are low. Also easy to quit this industry because of the low costs.

-Perfect Information.

Buyers and Sellers Have Perfect Information. All the buyers and sellers know all of the relevant information.

-The Competitive Firm Is A Price Taker.

The firm must take the market price as given.