Asked by Willie Alfaro Mora on May 06, 2024
Verified
Use the following statements to answer this question: I. Markets may be highly (but not perfectly) competitive even if there are a few sellers.
II) There is no simple indicator that tells us when markets are highly competitive.
A) I and II are true
B) I is true and II is false
C) I is false and II is true
D) I and II are false
Highly Competitive
A market structure characterized by a large number of small firms, free entry and exit, and a high level of competition where no single firm can significantly influence market prices.
Simple Indicator
A quantitative measure that can be used to gauge or describe the performance or status of a particular phenomenon.
Sellers
Individuals or entities that offer goods or services for sale to buyers in the market.
- Discern the effects of market structure on consumer welfare and the operational efficiency of markets.
Verified Answer
Learning Objectives
- Discern the effects of market structure on consumer welfare and the operational efficiency of markets.
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