A competitive market is characterized by
A) the absence of entry barriers
B) many buyers with a single seller
C) imperfect information
D) a differentiated product

Question

Quizplus · Accepted Answer

A competitive market is characterized by the presence of multiple buyers and sellers, which implies that there are no significant entry barriers that prevent new firms from entering the market. This leads to greater competition, which in turn results in lower prices and a higher quality of goods and services. The options B, C, and D are characteristics of non-competitive markets, as they imply the presence of a dominant seller, market inefficiencies, and differentiated products, respectively.

A Competitive Market Is Characterized by