Question

Which of the following market structures does the global market for Arborio rice (a specific strain that grows well all over the world) best match? *

a. perfect competition
b.monopolistic competition
c.oligopoly
d.monopoly
e.natural monopoly
f.price discriminating monopoly

Answer 1

a. perfect competition

Step-by-step explanation:

This is because, there is no undue manipulation or advantage of the rice by any given country due to its access to the market.

Since the rice grows in virtually all countries, it create a perfect competition market for the countries all over the world which helps in determining its price fluctuations.