Which of the following lists three main characteristics of a competitive market?
A) many buyers and sellers,similar products,easy entry into the market
B) many buyers and few sellers,similar products,easy entry into the market
C) many buyers and sellers,differentiated products,easy entry into the market
D) many buyers and sellers,similar products,barriers to entry into the market
E) many buyers and few sellers,unique products,barriers to entry into the market

Question

Quizplus · Accepted Answer

A competitive market is characterized by many buyers and sellers, similar products, and easy entry and exit from the market. Option A includes all three of these characteristics, making it the correct choice. Option B has the incorrect number of sellers, and option C has differentiated products which is not a characteristic of a perfectly competitive market. Option D has barriers to entry, which is not a characteristic of a perfectly competitive market, and option E has unique products which violate the assumption of homogeneous products in a perfectly competitive market.

Which of the Following Lists Three Main Characteristics of a Competitive