Question

what market structure is most free? And is that where we find ourselves operating the most? Why or why not?

Answer 1

Perfect competition market is the most free form of market. The characteristics are:

1. Large number of sellers
2. All of them make same profits
3. Free entry and exit from the market
4. All of them sell homogenous goods
5. Lesser consumer preferences

The most form of market operating is monopolistic market which is different from perfect competition in terms differentiated goods, consumer preference in terms of taste, brand, quality. So in order to make unique presence in the market and create their own brand identity, firms sell goods which are differentiated from others and establish a permanent customer base.