A competitive market is
A)one in which firms cannot change output levels.
B)any market with several firms in it.
C)a market with a single firm.
D)one in which a single firm cannot influence market price.
E)one in which consumers compete to buy goods and services.

Question

Quizplus · Accepted Answer

A competitive market is one where no single firm has market power, meaning they cannot influence market price. In such a market, firms are price takers and must accept the market price as given. Examples of competitive markets include agricultural markets where there are many small farmers producing the same crop, or stock markets where many buyers and sellers trade the same stocks.

A Competitive Market Is