A key characteristic of a competitive market is that

A) government antitrust laws regulate competition.
B) producers sell nearly identical products.
C) firms minimize total costs.
D) firms have price setting power.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single party can dictate prices or terms of trade.

Government Antitrust

Regulatory actions and laws implemented by the government to promote competition and prevent monopolies and other practices that restrain trade.

Price Setting

The process by which a company decides on the selling price of its products or services.