Question
Which of the following industries most closely approximates the perfectly competitive model?
Answer: Option D
Answer: (d)
In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Agricultural products are the most commonly used example of perfect competition.
First of all, they are homogenous products and neither consumer nor producer has influence over prices, they are simply price takers.
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Answer: (d)
In economic theory, perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Agricultural products are the most commonly used example of perfect competition.
First of all, they are homogenous products and neither consumer nor producer has influence over prices, they are simply price takers.
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