The market for babysitting services in a small town is characterized by many families that want to hire babysitters. The three potential babysitters who are offering their services are all equally qualified, and there are no restrictions on becoming a babysitter. What feature of a perfectly competitive market does this violate?

Question

Quizplus · Accepted Answer

The market described violates the feature of having many sellers, as there are only three potential babysitters offering their services, which does not constitute a large number of sellers typical of a perfectly competitive market.

The Market for Babysitting Services in a Small Town Is