The market for rice in Asia is supplied by thousands of rice farmers. Although the farms are different in size, none of the farmers produces a significant portion of rice. Consumers and producers are aware of the price at which rice is sold and thus all sellers charge the same price. Consumers do not care which farm produced the rice they purchase. The rice market in Asia is like what market structure?

Question

Quizplus · Accepted Answer

The described market conditions align with the characteristics of perfect competition, where there are many sellers, none of which control a significant portion of the market, products are homogeneous, and there is free entry and exit in the market.

The Market for Rice in Asia Is Supplied by Thousands