Which of the following are characteristics of competitive markets?
A. Large number of buyers and sellers, homogenous products, barriers to entry B. Large number of buyers and sellers, homogenous products, ease of entry C. Large number of buyers and sellers, differentiated products, ease of entry D. Large number of buyers with few sellers, homogenous products, ease of entry
Competitive markets are characterized by a large number of buyers and sellers, homogeneous products, and few barriers to entry.
Explanation:
Characteristics of Competitive Markets:
Large number of buyers and sellers: In a competitive market, there are many buyers and sellers, ensuring no single entity can influence prices significantly.
Homogeneous products: Products offered in competitive markets are identical or very similar, allowing for price competition.
Barriers to entry: Competitive markets typically have low barriers to entry, facilitating new firms entering the market easily.
