"Competitive price-taker markets" and "purely competitive markets" are
A) similar, but competition is stronger in the latter.
B) similar, but products are differentiated in the former.
C) merely alternative names for the same concept.
D) terms used to designate markets in which the firms confront a downward sloping demand curve.

Question

Quizplus · Accepted Answer

"Competitive price-taker markets" and "purely competitive markets" are alternative names for the same concept. They both refer to a market structure in which there are many buyers and many sellers, all selling an identical product, and none of them has the power to influence the market price. In other words, they are both characterized by perfect competition.

"Competitive Price-Taker Markets" and "Purely Competitive Markets" Are