Question

A firm that operates in a market with many buyers and sellers is operating under which market structure? Please choose the correct answer from the following choices.

a. oligopoly
b. perfect competition
c. monopoly
d. monopolistic competition

Answer 1

B. Perfect competition

Step-by-step explanation:

A perfectly competitive market structure is characterized by many buyers and sellers, undifferentiated products, no transaction costs, no barriers to entry and exit, and perfect information about prices of goods.