In a market for milk, it is easy for new businesses to enter the market since there are no barriers to entry. Prices are also determined by supply and demand, so the businesses are not able to set their own price. What type of market structure does the given situation represent?(1 point)

Responses

monopolistically competitive market
monopolistically competitive market

an oligopoly
an oligopoly

a monopoly
a monopoly

perfectly competitive market

1 answer

The given situation represents a perfectly competitive market. In this type of market, there are no barriers to entry for new businesses, prices are determined by supply and demand, and individual firms cannot set their own prices.