ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Agricultural products
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The market for brownies at First Coast
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A large corporation
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All of the previous are examples of perfect competition
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Detailed explanation-1: -Product differentiation is not a characteristic of perfect competition. Price taking behavior, freedom of entry or exit for buyers, and a large number of buyers and sellers are characteristics of perfect competition.
Detailed explanation-2: -A market that is not perfectly competitive is a monopoly. It has only one seller selling a unique product and can exploit buyers due to the lack of close alternatives or substitutes.
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: -Large number of buyers and sellers. Homogenous product is produced by every firm. Free entry and exit of firms. Zero advertising cost. Consumers have perfect knowledge about the market and are well aware of any changes in the market. All the factors of production, viz. No government intervention. More items