While very few markets are 'purely competitive' according to the strict economics definition, market analysts often use competition as the:
A) benchmark from which to judge other market settings.
B) standard of an inefficient market structure.
C) market with poor entry and exit conditions.
D) one market with typical asymmetry in information.

Question

Quizplus · Accepted Answer

Using competition as a benchmark allows analysts to evaluate the degree of competition within a market and compare it to other market settings. This helps them determine the level of efficiency and competitiveness within a given industry. It is not necessarily an indicator of inefficiency or poor entry/exit conditions, nor is it necessarily a market with typical asymmetry in information.

While Very Few Markets Are 'Purely Competitive' According to the Strict