Real-world markets that approximate the four assumptions of the theory of perfect competition include

Question

Quizplus · Accepted Answer

Agricultural markets and the stock market are closer to the theory of perfect competition due to the large number of buyers and sellers and the relatively homogeneous nature of the products or shares traded. The soft drink market, dominated by a few large companies, does not fit well with the assumptions of perfect competition.

Real-World Markets That Approximate the Four Assumptions of the Theory