Markets and competition In a perfectly competitive market, all producers sell (perfectly identical/different) goods or services. Additionally, there are (few, many) buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price (takers, makers)

True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets.

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Business

Jake Walton

24 December, 18:27

Markets and competition In a perfectly competitive market, all producers sell (perfectly identical/different) goods or services. Additionally, there are (few, many) buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price (takers, makers)

True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets.

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Answers (1)

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Lawrence Beck · Answer 1

In a perfectly competitive market, all producers sell perfectly identical goods or services. Additionally, there are many buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price takers.

Explanation:

Perfect competition is a theoretical model of economics that describes a form of market in which no consumer or producer has the market power to influence the price of a commodity.

Because in a fully competitive market, the price of the commodity is the lowest economically viable price (the price of the commodity exactly matches its cost of production) and the commodity is produced in the highest volume. According to traditional economic science, perfect competition leads to the most efficient production systems.