Question

In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price . True or False: The market for public utilities, such as gas and electricity, does not exhibit the two primary characteristics that define perfectly competitive markets. True False

Answer 1

In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price .

TRUE

The market for public utilities, such as gas and electricity, does not exhibit the two primary characteristics that define perfectly competitive markets

FALSE

Step-by-step explanation:

A perfectly competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods. ... Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.