If Mark wants to sell his corn at a local farmers market, he must be aware that the product is identical and that he will have no control over the price. The market structure he is MOST likely participating in is

COMPETITION AND MARKET STRUCTURES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If Mark wants to sell his corn at a local farmer’s market, he must be aware that the product is identical and that he will have no control over the price. The market structure he is MOST likely participating in is

A	monopolistic competition
B	oligopoly
C	perfect competition
D	monopoly

Explanation:

Detailed explanation-1: -In economic theory, perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers, buyers have perfect or full information, and companies cannot determine prices.

Detailed explanation-2: -In a perfectly competitive market: all firms sell an identical product; all firms are price-takers; all firms have a relatively small market share; buyers know the nature of the product being sold and the prices charged by each firm; the industry is characterized by freedom of entry and exit.

Detailed explanation-3: -In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES