Use the following statements to answer this question: I. Markets may be highly (but not perfectly) competitive even if there are a few sellers.
II) There is no simple indicator that tells us when markets are highly competitive.

A) I and II are true
B) I is true and II is false
C) I is false and II is true
D) I and II are false

Question

Frank Morgan · Accepted Answer

Final Answer : A, Explanation :  Both statements are true. Statement I is correct because a market can still be highly competitive with a few sellers if those sellers are competing strongly against each other. Statement II is accurate because competitiveness of markets is complex and cannot be determined by a single indicator, considering factors like number of sellers, product differentiation, entry barriers, and market behavior.

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