Question

Pick a specific market for a good or service. Examine that market and determine where that market lies on the spectrum of competition (perfectly competitive - monopoly, and everything in between). Provide the assumptions you use to make that determination. Discuss who the firms are in that market (if possible).

From the consumers perspective, is it beneficial that the market is set in that structure?

Answer 1

Let us our good to be a vegetable such has tomato.

So now ,it can consIder that the market for tomoto can as perfectly competitive market .

Reason :

1) There are no barriers to entry and exit.

2) The price of tomato will always constant among the various sellers as the product is homogeneous in nature .

3)   The refugee number of sellers options that used to make the determination is that the quality of tomato is same and the people are not biased towards particular seller .

4) However it is not possible to discuss the companies in that spectrum because there are hundreds of sellers in the market.