Which of the following describes a characteristic of a perfectly competitive market?
A)There are many buyers but few sellers.
B)There are many sellers but few buyers.
C)There are many buyers and sellers.
D)Equilibrium is achieved when demand for the product sold in the market equals the supply.

Question

Quizplus · Accepted Answer

A perfectly competitive market is characterized by many buyers and sellers, where no single buyer or seller has control over the price of the product. This means that individual buyers and sellers cannot affect the market price, which is determined by the forces of supply and demand. In a perfectly competitive market, there is free entry and exit, meaning that new firms can enter the market and existing firms can exit without any barriers. This ensures that the market remains competitive over the long run. Finally, buyers and sellers have perfect information about the market and the products being sold, which ensures that pricing and quality are consistent across the market.

Which of the Following Describes a Characteristic of a Perfectly