ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Answer and Explanation: Tomato market is a perfect competitive market. Tomatoes are homogenous and the price of agricultural products is determined by the forces of supply and demand.

Detailed explanation-2: -Pure or perfect competition is a market structure defined by a large number of small firms competing against each other. A single firm doesn’t have significant marketing power, and as a result, the industry produces an optimal level of output because firms don’t have the ability to influence market prices.

Detailed explanation-3: -The best examples of a purely competitive market are agricultural products, such as corn, wheat, and soybeans. Monopolistic competition is much like pure competition in that there are many suppliers and the barriers to entry are low.

Detailed explanation-4: -Perfect competition is an ideal type of market structure where all producers and consumers have full and symmetric information and no transaction costs.