Which of the following is always true in competitive price-taker markets?
A) There are more sellers than buyers.
B) Barriers to entry into the market are low.
C) The products of firms in the industry are differentiated.
D) The firms never earn economic profit.

Question

Quizplus · Accepted Answer

In competitive price-taker markets, barriers to entry are low, allowing new firms to enter the market easily, which is a defining characteristic of such markets.

Which of the Following Is Always True in Competitive Price-Taker