Buyers for grain set prices ahead of time by the marketplace. Sellers in this market are simply informed of the price and the amount that is needed. This market is likely one of a(n):
A)pure competition.
B)pure monopoly.
C)monopolistic competition.
D)oligopoly.

Question

Quizplus · Accepted Answer

In a pure competition market, there are many buyers and sellers, with no single entity having the power to set prices. In this scenario, buyers have already set the price for grain, indicating a lack of market power on the part of sellers. Thus, this market is likely an example of pure competition.

Buyers for Grain Set Prices Ahead of Time by the Marketplace