BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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one producer (seller) and many buyers
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a few large sellers that dominate the market
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buyers and sellers who exchange identical products of different tastes and shapes
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market structure that has all conditions of pure competition except identical products
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Detailed explanation-1: -What Is Perfect Competition? In economic theory, perfect competition occurs when all companies sell identical products, market share does not influence price, companies are able to enter or exit without barriers, buyers have perfect or full information, and companies cannot determine prices.
Detailed explanation-2: -In a perfectly competitive market, buyers and sellers possess perfect knowledge. This implies that no firm can charge a different price and no buyer is willing to pay a higher price for the same commodity. Sellers are completely aware of the prices prevailing in the market.
Detailed explanation-3: -Perfect competition occurs when there are many sellers, there is easy entry and exiting of firms, products are identical from one seller to another, and sellers are price takers.
Detailed explanation-4: -A monopoly is a market structure with only one seller of a particular product. Perfect competition is a market structure with many well-informed and independent buyers and sellers who exchange identical products.
Detailed explanation-5: -Perfect competition is a type of marketplace where multiple companies are selling the same product or service, and a large number of consumers are looking to purchase it. None of these companies have the power to set a price for that product or service without losing business to other competitors.