Which of the following firms is the closest to being a perfectly competitive firm?
A)a hot dog vendor in New York
B)Microsoft Corporation
C)Ford Motor Company
D)the campus bookstore

Question

Quizplus · Accepted Answer

A hot dog vendor in New York is the closest to being a perfectly competitive firm as they are likely to have many competitors selling a similar product in the same market, making it difficult for any one vendor to control the market price. There is also ease of entry and exit for new and existing hot dog vendors in the market. Microsoft Corporation and Ford Motor Company are both large and established firms that have some market power to influence prices, while the campus bookstore may have a degree of market power within the specific university it serves.

Which of the Following Firms Is the Closest to Being