ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Pizza, not close to the perfect competition, there are not many buyers and sellers participate in the market and high startup costs, sellers offer different products. Baseballs, close to the perfect competition, there are many buyers and sellers participate in the market, sellers offer identical products.

Detailed explanation-2: -The pizza industry is most likely to be a monopolistic competitive market. There are many sellers in the market which implies that each seller produces a small portion of the total output.

Detailed explanation-3: -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-4: -But the fast-food industry is not perfectly competitive because all these companies offer similar but not a standardized product.