If a California grape wholesaler operates in a perfectly competitive market, that wholesaler will have a _____ share of the market, and consumers will consider their grapes and their competitors' grapes to be _____.
A)large; identical
B)small; identical
C)small; differentiated
D)large; differentiated

Question

Quizplus · Accepted Answer

In a perfectly competitive market, there are many small firms that have a small market share. Their products are considered identical or homogeneous by consumers, so there is no product differentiation. Therefore, consumers will consider the wholesaler's grapes and its competitors' grapes to be identical.

If a California Grape Wholesaler Operates in a Perfectly Competitive