Hot Student Stories

Identical products, as well as a large number of buyers and sellers, are characteristics of a monopolistic market. in such markets, sellers of goods cannot influence the prevailing market price, giving them the role of price in the market. true or false: the market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets.

Justin Parker

in Business

1 answer

1 answer

Caroline Campbell on December 6, 2018

False - the Companies in a market of monopolistic competition have some level of control over the price. However, this control is very limited by the close substitution of similar products... The market of lettuce exhibits the two main characteristics that define a perfectly competitive market. In the first place, consists of many buyers and sellers. In the second place, there are no barriers to entry or exit.

Add you answer