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Commerce · Q81

Economics

Graduate and Post Graduate · Commerce · question 81

Q81

Which of the following markets comes closest to perfect market?

A.
Wheat market
Answer
B.
Cigarette market
C.
Cold drinks market
D.
Stock market

Answer: Option A

Solution

Answer: Option A
Solution:
Wheat market comes closest to perfect market. A perfectly competitive firm is called a price taker, because the pressure of competing firms forces them to accept the prevailing equilibrium price in the market. When a wheat grower wants to know what the going price of wheat is, he or she has to go to the computer or listen to the radio to check.