Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 12

Suppose two artists are selling paintings for the same price in adjacent booths at an art fair. By the end of the day, one artist has nearly sold out of her paintings while the other artist has sold nothing. Which characteristic of competitive markets has not been met and best explains this outcome?
a. Standardized good.
b. Full information.
c. No transaction costs.
d. Participants are price takers