The correct answer is: D. a-1, b-2, c-3, d-4
Here is a brief explanation of each option:
a. Many small sellers: This means that there are a large number of sellers in the market, each of which has a small share of the market. This prevents any one seller from exerting a significant influence over price.
b. Many small buyers: This means that there are a large number of buyers in the market, each of which has a small share of the market. This prevents any one buyer from exerting a significant influence over price.
c. Product undifferentiated: This means that the products offered by different sellers are identical. This means that buyers will only consider price when making their purchasing decisions.
d. Easy entry and exit: This means that it is easy for firms to enter and exit the market. This means that firms will only enter the market if they expect to make a profit, and will exit the market if they are making a loss.
I hope this helps!