The market structure in which the largest quantity of output is sold at the minimum possible price is:
A)monopoly.
B)perfect competition.
C)oligopoly.
D)monopolistic competition.
E)duopoly.

Question

Quizplus · Accepted Answer

Perfect competition is the market structure where there are many buyers and sellers, and they have no market power to influence price. In perfect competition, the equilibrium price is determined at the minimum possible level, as every seller is a price taker and must sell at the prevailing market price. Therefore, in perfect competition, the largest quantity of output is sold at the minimum possible price.

The Market Structure in Which the Largest Quantity of Output