In Vin del Mar, Chile, there are a dozen stores specializing in selling the same quality of seafood products on one street. An individual store dare not charge more than the going price without the risk of losing business to the other stores that are selling the fish at a common price. This is an example of what type of market?

Question

Quizplus · Accepted Answer

This scenario is an example of perfect competition, where there are many sellers in the market offering a homogeneous product, and no single seller can influence the market price.

In Vin Del Mar, Chile, There Are a Dozen Stores