choose the correct statements about competitive markets. 1. a single buyer in a competitive market cannot…

choose the correct statements about competitive markets. 1. a single buyer in a competitive market cannot influence the price. 2. in a competitive market, prices are eventually driven down to zero. 3. a competitive market is a market for services but not for goods. 4. a single seller in a competitive market cannot influence the price. a. statements 1 and 4 are correct. b. statements 2 and 3 are correct. c. statements 3 and 4 are correct. d. statements 1 and 2 are correct.

choose the correct statements about competitive markets. 1. a single buyer in a competitive market cannot influence the price. 2. in a competitive market, prices are eventually driven down to zero. 3. a competitive market is a market for services but not for goods. 4. a single seller in a competitive market cannot influence the price. a. statements 1 and 4 are correct. b. statements 2 and 3 are correct. c. statements 3 and 4 are correct. d. statements 1 and 2 are correct.

Answer

Brief Explanations:

In a competitive market, there are many buyers and sellers, so a single buyer or seller is a price - taker and cannot influence the price (statements 1 and 4 are correct). Prices are not driven down to zero as producers need to cover costs. Competitive markets exist for both goods and services.

Answer:

A. Statements 1 and 4 are correct.