All along the beach in San Diego, California are shops which rent boogie boards by the hour. Tourists perceive that all rental boogie boards are identical, all prices are clearly listed on signs in front of the shops, and there are no restrictions on entry and exit in the boogie board market. What type of market is the boogie board market?

Question

Quizplus · Accepted Answer

The boogie board market is an example of perfect competition because there are many small firms (i.e. rental shops), identical products (i.e. boogie boards), no barriers to entry or exit, and prices are clearly visible to consumers.

All Along the Beach in San Diego, California Are Shops