Question

True or false: the market for wheat does not exhibit the two primary characteristics that define perfectly competitive markets.

Answer 1

Answer: False

Explanation: The wheat market actually exhibits the two primary characteristics of a perfectly competitive market. The reason is this, in a perfectly competitive market, all producers sell identical goods or services (wheat in this case). Furthermore, buyers and sellers of the product are plentiful. These two characteristics makes the players, both buyers and sellers, in perfectly competitive markets to be price takers. Given the above, false is the right answer to the question.

Answer 2

The answer is obviously FALSE because pure or perfectly competition is the competition in the market with many buyer and seller for this question, market of wheat is belong to the perfectly competition because it has many buyer and seller also market for wheat can enter into market anytime because it is classified in the perfect competition in which says that any small firm can enter freely in the market.