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Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?
- a)Electricity
- b)Cable television
- c)Cola
- d)Milk
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Which of the following markets would most closely satisfy the requirem...
Perfectly Competitive Market
A perfectly competitive market is a market structure in which there are numerous buyers and sellers who are price takers. In such a market, the products are homogenous, and there are no barriers to entry or exit. The market price is determined by the forces of demand and supply.
Cola as a Perfectly Competitive Market
The cola market is an example of a perfectly competitive market. Here's why:
Large number of buyers and sellers: The cola market has numerous buyers and sellers, and no one participant can influence the market price.
Homogenous product: The cola products are homogenous and have the same quality and taste across all brands.
No barriers to entry or exit: There are no significant barriers to entry or exit in the cola market. Any potential new entrant can easily enter the market and compete with existing players.
Price takers: All buyers and sellers in the cola market are price takers. The market price is determined by the forces of demand and supply.
Conclusion
Out of the given options, only cola satisfies the requirements of a perfectly competitive market. Cable television and electricity markets are oligopolistic, and there are a limited number of players who can influence the market prices. The milk market is not perfectly competitive as there are different types of milk with varying levels of quality and pricing.
A perfectly competitive market is a market structure in which there are numerous buyers and sellers who are price takers. In such a market, the products are homogenous, and there are no barriers to entry or exit. The market price is determined by the forces of demand and supply.
Cola as a Perfectly Competitive Market
The cola market is an example of a perfectly competitive market. Here's why:
Large number of buyers and sellers: The cola market has numerous buyers and sellers, and no one participant can influence the market price.
Homogenous product: The cola products are homogenous and have the same quality and taste across all brands.
No barriers to entry or exit: There are no significant barriers to entry or exit in the cola market. Any potential new entrant can easily enter the market and compete with existing players.
Price takers: All buyers and sellers in the cola market are price takers. The market price is determined by the forces of demand and supply.
Conclusion
Out of the given options, only cola satisfies the requirements of a perfectly competitive market. Cable television and electricity markets are oligopolistic, and there are a limited number of players who can influence the market prices. The milk market is not perfectly competitive as there are different types of milk with varying levels of quality and pricing.
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Community Answer
Which of the following markets would most closely satisfy the requirem...
Perfectly competitive market is that market where there are number of customers and number of firms are available for the same commodity but there is a little difference between the quality of that commodity. In the above case cola can satisfy the requirement because there are many companies in the market to manufacture cola with different quality. But the other product for example milk is available in same quality In every firm.
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Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?a)Electricityb)Cable televisionc)Colad)MilkCorrect answer is option 'C'. Can you explain this answer?
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Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?a)Electricityb)Cable televisionc)Colad)MilkCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?a)Electricityb)Cable televisionc)Colad)MilkCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following markets would most closely satisfy the requirements for a perfectly competitive market?a)Electricityb)Cable televisionc)Colad)MilkCorrect answer is option 'C'. Can you explain this answer?.
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