Suppose the market for cement is such that the output of all sellers is identical in composition and quality.While there are a large number of buyers and sellers,everyone conducts transactions at a common market price.Which of the following statements is true about the structure of the cement market?

Question

Quizplus · Accepted Answer

The market for cement meets all the conditions of perfect competition, including identical products, a large number of buyers and sellers, and a common market price. Therefore, the cement market is perfectly competitive. Option B is incorrect because there is no information provided in the question about government regulation. Option C is incorrect as all participants are price takers and not price makers. Option D is incorrect since it implies coercion, and involuntary transactions are not a characteristic of a perfectly competitive market.

Suppose the Market for Cement Is Such That the Output