Question

In the market for strawberries, individual firms face no barriers to entry, sell a homogeneous product, and have no control over the market price. This market is best described as a _____.(1 point)

Responses

Answer 1

The market for strawberries described, where individual firms face no barriers to entry, sell a homogeneous product, and have no control over the market price is best described as a perfectly competitive market. In a perfectly competitive market, there are many small firms selling an identical product, with no barriers to entry or exit, and no control over the market price. Each firm is a price-taker and must accept the market price set by the forces of supply and demand.

Step-by-step explanation:

Answer 2

perfectly competitive market