Question

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.

Answer 1

Answer:

Perfectly identical goods, Many buyers & sellers, Price Takers. True

Explanation:

Perfectly Competitive market forms : consist - many buyers & sellers, trading homogeneous (identical) goods, at uniform prices.

Since, each firm constitutes an insignificant part of the market supply. So, firms don't have control over price determination & 'take' the price unanimously set by the industry .

Lettuce markets might not be an illustrative case of Perfect Competition as - The lettuce may not be homogeneous, it might be of different qualities. And the number of buyers & sellers may also not be that large. So, lettuce sellers might have certain control over price determination.