Skip to content

CMA Foundation · Fundamentals of Business Economics and Management · Forms of Market

Which of the following is generally NOT a factor that widens the extent (area) of a market for a commodity?

High perishability does not widen a market. Perishable goods such as fresh milk or fish spoil quickly and so are sold in limited local areas, whereas durability, portability and good transport and communication extend the area over which a commodity is traded.

  1. ADurability of the commodity
  2. BGood transport and communication facilities
  3. CHigh perishability of the commodityCorrect
  4. DPortability of the commodity with high value per unit weight

Explanation

Goods that are durable, portable and have high value for small weight can be sold over wide areas. Good transport also widens markets. Highly perishable goods like fresh fish or milk spoil quickly, so their markets are generally local and narrow.

Did you get it right without looking?

One question tells you little. A timed set on Forms of Market shows your real accuracy, how long you take and where you lose marks.

Practise Forms of MarketFree diagnostic mock

More Forms of Market questions