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.
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
1 answer