Which of the following lists the three main characteristics of a competitive market?
A) many buyers and sellers, similar products, easy entry into the market
B) many buyers and few sellers, similar products, easy entry into the market
C) many buyers and sellers, differentiated products, easy entry into the market
D) many buyers and sellers, similar products, barriers to entry into the market
E) many buyers and few sellers, unique products, barriers to entry into the market

Question

Quizplus · Accepted Answer

The three main characteristics of a competitive market are many buyers and sellers, similar products, and easy entry into the market. Option A correctly lists all three features. Option B is incorrect because it has few sellers, not many, as a characteristic. Option C is incorrect because it has differentiated products, not similar products, as a characteristic. Option D is incorrect because it has barriers to entry as a characteristic, while a competitive market requires easy entry. Option E is incorrect because it has unique products as a characteristic, while a competitive market requires similar products.

Which of the Following Lists the Three Main Characteristics of a Competitive