Why does a perfectly competitive market require many participants as both buyers and sellers?
(A) So that both buyer and seller have the same information.
(B) In order to maintain quality over the goods.
(C) So that no individual can control the price.
(D) Because the merchandise must be uniform.
Ans: (C) So that no individual can control the price.
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If the economy were left on its own without the interference of government or the Fed, it would move toward an equilibrium rate of growth that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. classical b. Keynesian c. monetarism d. supply-side e. neo-Keynesian
If a 10-year Treasury bond pays 3.1 percent and a 10-year corporate bond pays 7.4 percent, what is the interest rate spread on this particular corporate bond?
A. 4.3 percent B. 7.4 percent C. 10.5 percent D. 22.9 percent