Suppose two artists are selling paintings for the same price in adjacent booths at an art fair.

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Suppose two artists are selling paintings for the same price in adjacent booths at an art fair. By the end of the day, one artist has nearly sold out of her paintings while the other artist has sold nothing. Which characteristic of competitive markets has not been met and best explains this outcome?
a. Standardized good.
b. Full information.
c. No transaction costs.
d. Participants are price takers.
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Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

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