In a perfectly competitive market, several key characteristics must be met: there are many buyers and sellers, products are homogeneous (identical), there are no barriers to entry or exit, and all participants are price takers.
Based on these criteria, the markets from your list that are typically considered to approach perfect competition are:
- Tomatoes - This market often has many sellers and buyers with relatively homogeneous products.
- Wheat - Similar to tomatoes, the wheat market generally has many participants and the product is largely identical across farms.
The other markets listed (Shampoo, Cell Phone Service, Hair Salons, Airline Travel, Strawberries, Televisions) tend to have more product differentiation, brand loyalty, and barriers to entry, which disqualifies them from being considered perfect competition.
So, the answer is:
- Tomatoes
- Wheat
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