Which of the following is the best example of a perfectly competitive industry?
A)wheat production
B)steel production
C)electricity production
D)airplane production

Question

Quizplus · Accepted Answer

Wheat production is a good example of a perfectly competitive industry because there are many small producers who cannot determine market prices, there are no barriers to entry or exit, and the product is homogenous (i.e. all wheat is the same). Steel production, electricity production, and airplane production are not perfect examples of perfectly competitive industries as there are barriers to entry or exit and/or the products are not homogenous.

Which of the Following Is the Best Example of a Perfectly