To have competition as economists define it,

Question

Quizplus · Accepted Answer

Competition as defined by economists is perfect competition, which requires a large number of firms in an industry, where no single firm has significant market power to influence price. This way, all firms have to accept the market price, and none can meaningfully affect it. B) describes an oligopoly, where a few firms dominate the market and can influence the price. C) describes monopolistic competition, which also has many firms but allows each to differentiate its products and potentially influence their prices.

To Have Competition as Economists Define It