Question

A market where homogeneous products are sold with no control over price by an individual firm or a buyer is ______.

Options

• Oligopoly

• Monopolistic competition

• Perfect competition

• Monopoly

Answer 1

A market where homogeneous products are sold with no control over price by an individual firm or a buyer is perfect competition.

Explanation:

Perfect competition occurs when a large number of buyers and sellers trade identical (homogeneous) products. Because each firm controls an insignificant amount of the whole market, no single buyer or seller can influence market prices, forcing everyone to operate as a price taker.