Which of the following is the best example of a perfectly competitive firm?
A)a corn farmer in Illinois
B)a Taco Bell restaurant
C)the Ford Motor Company
D)United Parcel Service (UPS)

Question

Quizplus · Accepted Answer

A corn farmer in Illinois is the best example of a perfectly competitive firm as they are a price taker, meaning they have no control over the price of the commodity they produce (corn) as it is a standardized product and there are many other corn farmers in the market producing the same product. In a perfectly competitive market, there are many buyers and sellers, the products are identical, and entry and exit to the market are easy. Taco Bell, Ford Motor Company, and UPS are not perfect examples of perfectly competitive firms as they do have some control over the price of their products, have some degree of product differentiation, and may face barriers to entry or exit from the market.

Which of the Following Is the Best Example of a Perfectly