Question

gather as much information as possible.

1. the ______ spent gathering information must be worth the amount of money that will be saved.
2. what is another name for perfect competition?

• seller’s market
• pure competition
• simple competition

1. what do perfectly competitive markets require?

• limited numbers of sellers
• unlimited access to bank loans
• many participants on the buying and selling sides

1. what is a commodity?

• a product that is considered the same regardless of who produces or sells it
• a good that is sold in large numbers early on, but then sales slow later
• a product that varies in quality from one producer to another

1. under perfect competition, what do buyers all have access to?

• information about the features and price of a product
• information about how much the producer paid for the product
• information about how many units a particular seller has sold

Explanation:

Question 1

Perfect competition is also known as pure competition. A seller’s market is a market with high demand and low supply (favorable for sellers), not related to perfect competition. Simple competition is not the standard term for perfect competition.

Perfectly competitive markets require many participants on both buying and selling sides (so no single entity can influence price). Limited numbers of sellers would be a monopoly/oligopoly. Unlimited access to bank loans is not a requirement for perfect competition.

A commodity is a product that is homogeneous (same regardless of producer/seller), like wheat or oil. A good with sales that slow later is about product life cycle, not a commodity. A product with varying quality is differentiated, not a commodity.

Answer:

Pure competition

Question 2