Which of the following is a characteristic of a competitive market?
A)There are many buyers but few sellers.
B)Firms sell differentiated products.
C)There are many barriers to entry.
D)Buyers and sellers are price takers.

Question

Quizplus · Accepted Answer

In a competitive market, buyers and sellers are price takers, meaning they have no significant control over the market price. This indicates that there are a large number of both buyers and sellers, making it difficult for any one player to influence the market price. A and B are characteristics of a monopolistic market, and C is a characteristic of a market with monopolies or oligopolies.

Which of the Following Is a Characteristic of a Competitive