A market is competitive if (i)
Firms have the flexibility to price their own product.
(ii)
Each buyer is small compared to the market.
(iii)
Each seller is small compared to the market.
A)(i) and (ii) only
B)(i) and (iii) only
C)(ii) and (iii) only
D)(i), (ii), and (iii)

Question

Quizplus · Accepted Answer

In a competitive market, both buyers and sellers are small compared to the market, meaning no single buyer or seller can influence the market price. Firms do not have the flexibility to set their own prices; they are price takers.

A Market Is Competitive If (I)