A perfectly competitive market has ?
Correct answer: D. many buyers and sellers.
- A. firms that set their own prices
- B. only one seller.
- C. at least a few sellers.
- D. many buyers and sellers.
Explanation
Perfect competition requires many buyers and sellers, with no individual participant large enough to control the market price. A single seller describes monopoly, not perfect competition.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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