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27 August, 21:23

When companies that manufacture shipping containers want to buy iron ore, the purchase decision is solely based on price. This is because there are a large number of sellers in the iron ore industry, and iron ore is a highly undifferentiated commodity. Which of the following industry competitive structures does the iron ore industry best illustrate?

1) Monopoly

2) Oligopoly

3) Perfect competition

4) Monopolistic competition

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  1. 27 August, 21:51
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    3) Perfect competition

    Explanation:

    The perfect competition is a good market for competition is a market in which rivalry is strong.

    It has the following features

    1. Within this competition between producer and customer, knowledge is ideal with regard to the market.

    2. Entrance is open and exit

    3. Deals with similar or homogeneous products

    4. The buyers and sellers are more involved in this market

    5 There is no transport cost involved

    So according to the given situation, the most appropriate option is 3 i. e perfect competition
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