ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Real-world examples that resemble the perfect competition ideal include: 1. Farmers’ markets: The average farmers’ market is perhaps the closest real-life example to perfect competition. Small producers sell nearly identical products for very similar prices.

Detailed explanation-2: -The agricultural industry probably comes closest to exhibiting perfect competition because it is characterized by many small producers with virtually no ability to alter the selling price of their products.

Detailed explanation-3: -Therefore, agriculture is the best example of a perfectly competitive market.

Detailed explanation-4: -Street food vendors are considered to be an example of a perfect competition mainly because, the food sold are homogeneous in nature, and are price almost similarly at all vendors. Consumers can free buy food at any vendor they prefer. Also, sellers can enter or exit the market freely.