What characterizes a competitive equilibrium?
A) Markets are rationed.
B) Governments stay out of the market.
C) Economic agents are price-takers.
D) It is costly to experiment with policies.
C
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One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. What effect do you think this will have on international trade between countries?
What will be an ideal response?
A monopolistic competition is a market structure where:
a. a large number of firms compete in a market and sell non-identical products b. a small number of firms, perhaps just two or three, sell all of the output in a market. c. a large number of firms compete in a market and sell identical products. d. a firm produces and sells all of the output—for which there are no close substitutes—in the market.