ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What characteristic of a purely competitive market does crude oil have?
A
The product has no substitutes that are close to it in price.
B
The product has an unlimited number of sellers.
C
The product is always packaged in the same way.
D
The product is the same no matter who produces it.
Explanation: 

Detailed explanation-1: -What characteristic of a purely competitive market does crude oil have? The product is the same no matter who produces it.

Detailed explanation-2: -a marketing situation in which there are a large number of sellers of a product which cannot be differentiated and, thus, no one firm has a significant influence on price. Other prevailing conditions are ease of entry of new firms into the market and perfect market information.

Detailed explanation-3: -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-4: -Large numbers of buyers and sellers in the market. Free entry and exit of firms in the market. Each firm should be selling a homogeneous product. Buyers and sellers should possess complete knowledge of the market. No price control. More items

There is 1 question to complete.