Question

Vamplife is a company that produces blood for vampire consumption. In this market, assume that there are many firms, entry and exit is relatively easy, and firms sell a homogeneous product. Vamplife is a firm in which market structure?

1. monopolistic competition
2. perfect competition
3. monopoly
4. oligopoly

Answer 1

The correct answer is number "2": perfect competition.

Step-by-step explanation:

Perfect competition is a theoretical market structure in which competition is at its greatest level possible. It functions as a standard to measure the efficiency and effectiveness of real-world markets. Inside a market with perfect competition, all firms sell an identical product and the industry is characterized by low or no barriers to enter and exit an industry.