If Mark wants to sell his corn at a local farmers market, he must be aware that the product is standardized 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 standardized 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: -The market for corn is considered perfectly competitive because there are many sellers, entering the market is easy, and regardless of sellers, the product is identical.

Detailed explanation-2: -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-3: -Oligopoly. means few sellers. In an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace. In addition, because the cost of starting a business in an oligopolistic industry is usually high, the number of firms entering it is low.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES