Use the following statements to answer this question: I. Markets that have only a few sellers cannot be highly competitive.
II) Markets with many sellers are always perfectly competitive.
A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II are false.

Question

Quizplus · Accepted Answer

Markets with only a few sellers can still be highly competitive if those sellers are in fierce competition with each other. Markets with many sellers are not always perfectly competitive, as there can be barriers to entry, product differentiation, or other factors that prevent perfect competition.

Use the Following Statements to Answer This Question: I