ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Providing buys and sellers with information
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revealing competitive trade secrets
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converting private businesses into government agencies
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concentrating information in the hands of the government
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Detailed explanation-1: -Public disclosure is used as a tool to prevent market failure by allowing the information about a product and its process to be revealed to the public. This disclosure of information would leave no place to lack for information between buyer and seller.
Detailed explanation-2: -Why is adequate information needed by the buyers and sellers in a market? Information is needed to make a economic decisions. every member keeps to the agreed output levels. established rivals and new firms would lure customers away with slightly different and/or cheaper products.
Detailed explanation-3: -The model of perfect competition describes idealized conditions under which all buyers and sellers are price-takers.
Detailed explanation-4: -Well-Informed Buyers/Sellers-Both buyers and sellers know the market prices and other conditions. Independent Buyers/Sellers-Buyers and sellers do not band together to influence prices. Freedom to Enter/Exit Markets-Producers can enter or exit market with no interference.