Question 44
Market StructuresWhat do we call a market where there is a large number of buyers and sellers, such that no one has an appreciable influence on prices?
- A.Free market
- B.Perfectly competitive market
- C.Controlled market
- D.Stock exchange market
- E.Open market.
Show the answer and explanation
Answer: B (Perfectly competitive market)
Explanation
In perfect competition there are so many buyers and sellers that each is a price taker.