A market's boundaries are determined by:
A)The geographical extent of the markets that are supplied by the incumbents
B)The type of product which is sold,and the type of customers willing to pay for the product
C)Price homogeneity-within the confines of a market,a single price rules
D)Substitutability on both the demand side and the supply side

Question

Quizplus · Accepted Answer

Markets are determined by the existence of substitutable goods on both the demand side (alternative products that consumers can choose) and the supply side (alternative suppliers that can offer the same product). This means that a particular product may have multiple markets depending on the specific substitutes available. The other options (A, B, and C) do not fully capture the complexity of defining a market.

A Market's Boundaries Are Determined By