EBK KRUGMAN'S ECONOMICS F/AP COURSE
3rd Edition
ISBN: 9781319233822
Author: Anderson
Publisher: MPS PUB
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Question
Chapter 5, Problem 1MCQ
To determine
The option that is true for a competitive market.
Expert Solution & Answer
Explanation of Solution
In a competitive market:
- There are many buyers and sellers
- Each firm sells a homogeneous product
- Firms are
price takers - Buyers and sellers cannot influence the market price
- Firms are allowed to enter and exit freely in the market, and
- Consumers and producers have complete information about the market.
In a
Thus, option “a” is correct.
Chapter 5 Solutions
EBK KRUGMAN'S ECONOMICS F/AP COURSE
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Similar questions
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