Question

At the twenty-fifth anniversary of the Woodstock Festival in 1994, there were many vendors who sold tie-dyed t-shirts. No matter where one went, each vendor was selling these t-shirts for $15 a piece. Which market structure model would best characterize such a situation?

Answer 1

Answer: Perfect competition

Explanation: In simple words, it refers to a market structure under which there are a large number of buyers and sellers each operating at a small level.

The prices under such a structure are determined by market forces of demand and supply because no individual participant is able to affect the prices.

Thus, we can conclude that the given case depicts perfect competition.