According to the available options, an example of a product with a purely competitive market is a peach. The best examples of a purely competitive market are agricultural products and stocks.
Explanation:
Pure competition market is a market that has various competitors selling the same product. This is also usually called perfect competition. Examples of purely competitive markets are stocks, agricultural products, foreign exchange, and most commodities. The purely competitive market also provides a basic economic market model that produces valuable visions about the nature of competition and how it offers the greatest value to consumers. A perfectly competitive market has four important qualities:
1. a large number of companies supply products
2. standard or homogeneous products
3. exit costs and low entry for companies that enter or exit the industry, and
4. for any market where the quality is correct, the supplier is the price taker because of no supplier influences on market prices.
There is a competitive market because the product is homogeneous or standardized and the price to leave or enter the industry is low, allowing many companies to compete in supplying products or services. High barriers to entry will limit the number of suppliers in the market. Therefore, there will be many sellers for standard products if the market price is above the average total cost of supplying the product. Here are the characteristics of a fully competitive market:
1. A very large number of companies
2. Standardized products (no product differentiation)
3. Individual companies have no control over prices (companies are price takers)
4. Entrepreneurs can easily create new companies in the industry (no barriers to entry)
5. There are almost no advertisements or "non-price competition"
LEARN MORE
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
• Identify the four strict conditions for a market with pure competition? brainly.com/question/11374389
• The market for which item generally involves pure competition? brainly.com/question/9045052
Keywords :
An example of a product with a purely competitive market is, purely competitive market
Subject : Social Studies
Class : 10-12
Sub-Chapter : Economics
