A perfectly competitive market exists when which of the following conditions are present?
A) individual buyers or sellers can affect prices by their own actions
B) market prices reach well above their historical averages due to demand outstripping supply
C) market prices drop well below their historical averages due to supply outstripping demand
D) there is a homogeneous product with buying prices equal to selling prices

Question

Quizplus · Accepted Answer

A perfectly competitive market requires a homogeneous product, meaning all goods are identical, and buying and selling prices are equal. The other options suggest market imperfections, such as individual actions affecting prices (A) and fluctuations in supply and demand (B and C).

A Perfectly Competitive Market Exists When Which of the Following