If a resource is purchased and sold in a perfectly competitive market:
A)there are a large number of resource suppliers and the resources are identical.
B)there is a single buyer of resource and the resources are identical.
C)there is a single buyer of resource and the resources are differentiated.
D)there is a large number of resource suppliers and the resources are differentiated.
E)there are a large number of resource suppliers and there is no entry or exit.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are a large number of resource suppliers and the resources are identical, meaning each supplier produces the same type of resource with no differentiation. This leads to market equilibrium and no power for any single supplier or buyer to influence prices. Thus, only option A fits the definition of a perfectly competitive market.

If a Resource Is Purchased and Sold in a Perfectly