A perfect market results when:
A) The number of buyers and seller is sufficiently large.
B) All buyers and sellers are price takers.
C) No transactions costs.
D) No taxes.
E) All of the above.

Question

Quizplus · Accepted Answer

A perfect market is characterized by a large number of buyers and sellers, where all participants are price takers, there are no transaction costs, and no taxes, among other conditions. These factors together ensure that no single participant can influence the market price, leading to an efficient allocation of resources.

A Perfect Market Results When