Which of the following is the best example of a perfectly competitive market?
A)automobiles
B)postal service
C)disk operating system software
D)milk
E)breakfast cereals

Question

Quizplus · Accepted Answer

Milk is the best example of a perfectly competitive market as there are numerous small producers who offer a standardized product, there are low barriers to entry for new producers, and consumers have access to perfect information about the product and its price. In contrast, the other options involve some degree of product differentiation, market power, or government regulation, which make them less than perfectly competitive markets.

Which of the Following Is the Best Example of a Perfectly