Question

· firms produce and sell identical products

· firms have a relatively small market share
· consumers are aware of the products and their prices
· there are few barriers to entry into the market
All of these are describing what market type of market structure?
A) monopoly
B) oligopoly
C) perfect competition
D) monopolistic competition

Answer 1

The appropriate response is perfect competition. It is the circumstance winning in a market in which purchasers and merchants are so various and all around educated that all components of restraining infrastructure are missing and the market cost of a product is outside the ability to control of individual purchasers and dealers.

Answer 2

the answer is: C. perfect competition

In a prefect competition, all competitors in a certain market operates without having any competitive advantage over one another beside their selling techniques.

One advantage of this type of market is that it's convenient for the costumers, since they do not have to conduct in prolonged bargaining fearing that the sellers would give them an overpriced product.

One disadvantage of this type of market is that it provide the customers with very little options due to the similarity of price and type of products sold in the market.