Competitive price-taker markets are characterized by
A) low entry barriers and a large number of firms selling a homogeneous product.
B) intense rivalry among firms selling differentiated products.
C) quality competition among firms and a wide variety of products.
D) advertising.

Question

Quizplus · Accepted Answer

Competitive price-taker markets, also known as perfectly competitive markets, are characterized by low entry barriers and a large number of firms selling a homogeneous product. This means that no single firm can influence the market price, and products are identical across different sellers.

Competitive Price-Taker Markets Are Characterized by