If in a vegetable market, prices reflect all available information and adjust instantaneously:
A)This is a perfect market
B)This is a monopolistic market
C)This is an efficient market
D)This is a common or 'garden' market

Question

Quizplus · Accepted Answer

An efficient market is one where all available information is reflected in the prices and they adjust instantaneously. This means that buyers and sellers can make informed decisions based on the current market conditions, leading to an allocation of resources that is optimal for the economy as a whole. This is different from a monopolistic market where one seller has control over the price and there are barriers to entry for other sellers to enter the market. A perfect market is one where there are no barriers to entry, no externalities, and homogenous products, which is not necessarily the case in a vegetable market. 'Garden' market is not a commonly used term in economics.

If in a Vegetable Market, Prices Reflect All Available Information