Question

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

B FALSE

Answer 1

The market for rice does not exhibit the characteristics of a perfectly competitive market.

Step-by-step explanation:

The statement that the market for rice does not exhibit the two primary characteristics that define perfectly competitive markets is true.

The two primary characteristics of perfectly competitive markets are:

1. Many buyers and sellers: In a perfectly competitive market, there are numerous buyers and sellers who have no individual control over the price of the product.
2. Homogeneous products: In a perfectly competitive market, the products being sold are identical or very similar.

The market for rice does not meet these criteria. While there may be multiple buyers and sellers, the products of rice can have variations in quality, brand, and other factors. Therefore, the market for rice is not perfectly competitive.