Identical products, as well as a large number of buyers and sellers, are characteristics of a (perfectly competitive or monopolistic) market. In such markets, sellers of goods (cannot or can) influence the prevailing market price, giving them the role of price (takers or makers) in the market.

True or False: The market for tomatoes does exhibit the two primary characteristics that define perfectly competitive markets.

Question

Business

Donavan Khan

4 March, 01:13

Identical products, as well as a large number of buyers and sellers, are characteristics of a (perfectly competitive or monopolistic) market. In such markets, sellers of goods (cannot or can) influence the prevailing market price, giving them the role of price (takers or makers) in the market.

True or False: The market for tomatoes does exhibit the two primary characteristics that define perfectly competitive markets.

+3

Answers (1)

Know the Answer?

Aidan Conrad · Answer 1

The correct answer is: perfectly competitive; cannot; takers.

Explanation:

The two main characteristics of a perfectly competitive market is a large number of buyers and sellers and homogenous products.

Because of a large number of sellers, any single firm is not able to influence the market price. This makes the firms in a perfectly competitive market to be price takers.

It is true that the market for tomatoes has these two main characteristics i. e homogeneous products and a large number of buyers and sellers.