If consumers view the output of any firm in a market to be identical to the output of any other...
Question:
If consumers view the output of any firm in a market to be identical to the output of any other firm in the market and the market has many firms and transaction costs are low, the demand curve for the output of any given firm:
a. will be horizontal.
b. will be vertical.
c. will be identical to the market demand curve.
d. cannot be determined from the information given
Market Structure:
A market is where buyers and sellers trade for goods and services. There are different types of market structures. The main categories of market structures are monopolistic, oligopoly, monopoly, and perfect competition.
Answer and Explanation: 1
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View this answerA market structure where there are many sellers and buyers that trade identical outputs with low transaction costs is called perfect competition. In...
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Perfect Competition: Definition, Characteristics & Examples
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Chapter 3 / Lesson 62
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Learn the definition, characteristics, and benefits of perfect competition. Review real-life examples of perfect competition between different companies.
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