The absence of which of the following conditions could lead to the collapse of a competitive market?
A)Many buyers of the same good.
B)Many sellers of the same good.
C)The inability of either suppliers or demanders to influence the price of the good.
D)Free entry of new firms attracted by high profits into the market.
E)The absence of any of the above could lead to imperfect competition in a competitive market.

Question

Quizplus · Accepted Answer

Each of the conditions listed (A-D) is essential for a competitive market to function properly. The absence of any of these conditions could lead to market failure or the emergence of imperfect competition, such as monopolies or oligopolies, where the market power is concentrated in the hands of a few suppliers or demanders.

The Absence of Which of the Following Conditions Could Lead