A market structure in which identical goods are produced by several different firms and sold at the market-determined price is referred to as ________.
A) an oligopoly
B) a monopoly
C) perfect competition
D) monopolistic competition

Question

Quizplus · Accepted Answer

In perfect competition, there are many firms producing identical products or services, and they all sell at the same market-determined price. There are no barriers to entry, and buyers and sellers have perfect information about each other. This market structure promotes efficient allocation of resources, as firms are forced to produce at minimum cost to remain competitive. Oligopoly and monopolistic competition involve differentiated products, while a monopoly has no competitors.

A Market Structure in Which Identical Goods Are Produced by Several