Which of the following is the closest example of a perfectly competitive market?
A) An agricultural product,such as wheat,produced by small farmers.
B) Ontario Hydro.
C) Bell Canada.
D) The Hudson Bay Company.
E) Mr.Sub.

Question

Quizplus · Accepted Answer

A perfectly competitive market is characterized by many small firms producing a homogenous product, easy entry and exit, perfect information, and no market power. Wheat produced by small farmers fits all these criteria and is therefore the closest example of a perfectly competitive market. The other options listed involve larger firms or firms with market power, which deviate from the conditions of perfect competition.

Which of the Following Is the Closest Example of a Perfectly