What market structure has many relatively small buyers and sellers, a standardized product, good information to both buyers and sellers, and no barriers to entry or exit? perfect competition monopoly monopolistic competition oligopoly

Question

Fritz

Business

15 June, 12:34

What market structure has many relatively small buyers and sellers, a standardized product, good information to both buyers and sellers, and no barriers to entry or exit? perfect competition monopoly monopolistic competition oligopoly

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Answers (2)

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Eaton · Answer 1

Perfect Competition

Explanation:

Perfect competition is a market characterized by many buyers and sellers that have full information and faces no barrier in entry and exit of the markets. It is the ideal form of market structure where competition is at is greatest possible value. The numerous buyers and sellers are engaged in trade of a homogeneous good in the market. It is also characterized by no long run economic profit and no control over prices.

Butler · Answer 2

Perfect competition

Explanation:

Perfect competition occurs when there are many buyers and sellers in the market, information on products is available, and there is little differentiation between products.

This results in high competition between the firm's in the market as they try to gain market share.

No firm is able to influence the market alone. There are also no barriers to entry and exit in this scenario because no firm can claim a large market share.

In this type of market the laws of sand and supply apply. That is the higher the price the less will be demanded, and the higher the price the more goods will be supplied.