Question

1) Markets and competition In a perfectly competitive market, all producers sell___________ goods or services. (perfectly identical/different) 2) Additionally, there are_______________ buyers and sellers.(few,many) 3) Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price _________ .(takers,makers)
4) The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets. True / false

Answer 1

Answer:

The answers are,

1) Perfectly Identical

2) many

3)takers

4)false

Explanation:

Lettuce is a commodity that can't be differentiated much based on the product. It can be however, differentiated from branding, packaging, etc.

But since the Lettuce is a broad category, we can assume that it is a competitive market.

Perfectly competitive markets do not really exist in the real world and are more of a hypothetical scenario. However, knowing the concept allows businesses and governments to make sound economic decisions regarding production and consumption.