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Question
Identify from the given options, the market which has a large number of buyers and sellers, selling homogeneous goods:
Options
Monopsony
Monopoly
Perfect Competition
Monopolistic Competition
MCQ
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Solution
Perfect Competition
Explanation:
The perfect competition market structure is distinguished by a vast number of buyers and sellers dealing with identical (homogeneous) products, implying that no single player can affect market price. Because the goods are perfect substitutes for one another, all businesses operate as price takers, and customers can easily transfer from one seller to another with no change in product quality or features.
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