ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unleaded gasoline
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Jeans
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Trucks
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Soda
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Detailed explanation-1: -So, Answer (c.) barley is the best example of a good produced and sold in a perfectly competitive market. The automobile and computer industries could be classified as oligopoly industries, in which a few sellers sell similar or identical products.
Detailed explanation-2: -Gasoline is considered under perfect competition as there is no differentiated variant of gasoline in the market. An oligopoly is a market form that consists of few sellers selling differentiated products to many consumers.
Detailed explanation-3: -What Is an Example of Perfect Competition? Consider a farmers market where each vendor sells the same type of jam. There is little differentiation between each of their products, as they use the same recipe, and they each sell them at an equal price.
Detailed explanation-4: -A market that is perfectly competitive has the following features: All companies sell homogenous products. All companies are price takers and not price makers.
Detailed explanation-5: -Many Competing Firms. A perfectly competitive market has many buyers and sellers. Similar Products Sold. Equal Market Share. Buyers have full information. Ease of Entry and Exit. Agriculture: Foreign Exchange Markets: Online shopping: More items