The main determinants of the boundaries of a market are whether:
A) sellers are domestic or foreign-owned corporations.
B) sellers are sole proprietorships, partnerships, or corporations.
C) buyers view the sellers' products as close substitutes for one another, and whether sellers compete for buyers in the same geographic area.
D) none of the above.

Question

Quizplus · Accepted Answer

The main determinants of the boundaries of a market are whether buyers view the sellers' products as close substitutes for one another, and whether sellers compete for buyers in the same geographic area. This is because market boundaries are defined by the level of competition and the substitutability of products from the perspective of the consumer, rather than the ownership structure or legal form of the sellers.

The Main Determinants of the Boundaries of a Market Are