Why is the market for used cars not considered to be perfectly competitive?
A) There is complete information.
B) The buyers are not price takers.
C) The good is standardized.
D) There are always very low transaction costs.

Question

Quizplus · Accepted Answer

The market for used cars is not considered to be perfectly competitive because the buyers are not price takers. This means that they have some bargaining power and can negotiate prices with sellers, which is not possible in a perfectly competitive market where prices are set by supply and demand forces.

Why Is the Market for Used Cars Not Considered to Be