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JAMB Economics 2019 Objective — Question 13

Question 13 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2019 Objective paper, with the correct answer and a full explanation.

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Which of the following best describes a perfectly competitive market?

  • A. There is only one seller who sets the price
  • B. There are many buyers and sellers, none of whom can influence price; every firm is a price takerCorrect
  • C. The government fixes all prices
  • D. Products are highly differentiated

Explanation

Under perfect competition, there are many buyers and sellers, none of whom can influence the price of goods and services — every firm is a price taker.

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