Question

While it is difficult to identify a real-world market that meets the textbook definition of perfect competition, there are many real-world markets in which price-taking behavior is observed and in those cases the model is quite valid. Give an example of a near-perfectly competitive firm. If you were managing that firm, how would you prepare for the Post-Pandemic World?

Answer 1

It can be mentioned that it is very difficult in order to identify a perfectly competitive market in this is because of the fact that ideal there would be at least certain amount of barriers to entry like a limited fixed cost and even the perfect information might not be available to an extent to other countries bazar producers and that is the reason why it is difficult to find a perfectly competitive market. an example of near perfectly competitive market is agricultural products such as wheat, barley etc and even in the post pandemic there will be a demand for food existing as a result of which the market would be continued but with less restrictions than before on the whole.