Which of the following is the best example of a perfectly competitive industry?

Question

Quizplus · Accepted Answer

Wheat production is a classic example of a perfectly competitive industry because it has many small firms producing an identical product, there are no barriers to entry or exit, and all firms have access to the same technology and resources. In addition, buyers and sellers have perfect information about prices and availability of wheat.

B, C, and D are not good examples of perfectly competitive industries because they either have significant barriers to entry, limited numbers of producers, or differentiated products. Steel production is an oligopoly with a few large producers dominating the market. Electricity production is often an oligopoly or monopolistically competitive depending on the local market structure. Airplane production is a concentrated oligopoly, with a few large firms dominating the market due to significant barriers to entry.

Which of the Following Is the Best Example of a Perfectly