Which of the following is an example of a perfectly competitive market?

Question

Quizplus · Accepted Answer

The market for cotton is a good example of a perfectly competitive market because there are many buyers and sellers, standardized products, and easy entry and exit into the market. This means that no individual buyer or seller can influence the market price, and there is no market power. The other options may have some level of competition, but they are not perfectly competitive markets. The market for hot dogs may have some barriers to entry for smaller producers, the market for breakfast cereal has some brand loyalty creating market power, and the frozen chicken nuggets market may have some differentiation in the products offered.

Which of the Following Is an Example of a Perfectly