The classification economists give to markets is based upon which two of the following features? (Make two selections.)Multiple select question.Magnitude of production.Frequency and size of profit.Intensity of competition.Number of buyers and sellers.
Question
The classification economists give to markets is based upon which two of the following features? (Make two selections.)Multiple select question.Magnitude of production.Frequency and size of profit.Intensity of competition.Number of buyers and sellers.
Solution
The classification economists give to markets is primarily based on:
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Intensity of competition: This refers to the degree of rivalry among businesses in the market. It can range from perfect competition, where there are many small firms all producing an identical product, to monopoly, where a single firm dominates the market.
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Number of buyers and sellers: This refers to the number of participants on both the buying and selling sides of the market. A market with many buyers and sellers is more competitive, while a market with few buyers or sellers can be less competitive.
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