Question

Which of the following is an example of a perfectly competitive market?

Options

• Local water supply board

• Wheat market in a large mandī

• Indian Railways on many routes

• Two major cola brands in a region

Answer 1

Wheat market in a large mandi

Explanation: 

Perfect competition has many buyers and sellers, a homogeneous product and free entry and exit, which is closely seen in agricultural mandī markets for wheat or rice.