In the market for Halloween pumpkins, there are many buyers and sellers, the pumpkin market is easy to enter, and all pumpkins sold are identical. One seller of pumpkins is on a main highway, and buyers don't know that many more sellers are located nearby. What feature of perfectly competitive markets is violated here?

Question

Quizplus · Accepted Answer

The feature of full information is violated because buyers are not aware of the many other sellers located nearby, which is crucial for making informed decisions in a perfectly competitive market.

In the Market for Halloween Pumpkins, There Are Many Buyers