ECONOMICS
COMPETITION AND MARKET STRUCTURES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The product has no substitutes that are close to it in price.
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The product has an unlimited number of sellers.
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The product is always packaged in the same way.
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The product is the same no matter who produces it.
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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