Question

In the market for strawberries, individual firms face no barriers to entry, sell a homogeneous product, and have no control over the market price. This market is best described as a _____.

oligopoly
perfectly competitive market
monopoly
monopolistically competitive market

Answer 1

The market you described is best characterized as a **perfectly competitive market**. In this type of market, individual firms sell a homogeneous product (like strawberries), face no barriers to entry, and have no control over the market price, meaning they are price takers.