Question

If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider her strawberries and her competitors' strawberries to be _____. Therefore, _____ advertising will take place in this market. small; standardized; little or no

Answer 1

Answer:

b) small; standardized (commodity); little, if any

Explanation:

THESE ARE THE OPTIONS FOR THE QUESTION

a] large; standardized (commodity); no

b] small; standardized (commodity); little, if any

c] small; differentiated; no

d] large; differentiated; extensive

Pure or perfect competition can be regarded as theoretical market structure whereby some of criterias are met. Such criteria are;

✓ identical product( homogeneous) are been sold by

all firms

✓All the firms involved are price takers(

market price of their product cannot be influenced by them)

✓ There is no influence of Market on prices. Therefore, in a scenerio whereby a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a small share of the market, and consumers will consider her strawberries and her competitors' strawberries to be standardized (commodity) Therefore, no advertising will take place in this market.