Question

In a perfectly competitive market, all producers sell identical goods or services. additionally, there are many buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are price . true or false: the market for public utilities, like gas and electricity, does exhibit the two primary characteristics that define perfectly competitive markets.

a. True
b. False

Answer 1

Answer: False

Step-by-step explanation:

A perfectly competitive market has the following characteristics,

a. Free entry and Exit

b. Sellers sell identical goods and services

c. Sellers and buyers are price takers

d. Many buyers and sellers

e. Perfect information

Gas and Electricity do not exhibit the two primary characteristics of perfectly competitive markets. This market has characteristics of a monopoly. Entry is restricted and the there are not many sellers.