Question

Search the web and view the video clip 1,000 Flowers Auctioned per Second in Holland. Then, research the Aalsmeer flower auctions in more detail.

What aspects of perfect competition do you see present in the Aalsmeer flower auctions? Since there is no truly perfectly competitive market in the world, but rather markets that approach this extreme, are there any elements of the Aalsmeer flower auction that you find do not fit the model of perfect competition?  

Describe another industry that you find fits the model of perfect competition.

Answer 1

Although the auction system is still their for Aalsmeer flowers but it is disappearing gradually due to several reasons like direct contact with the buyer and in the old time buyer can feel the flowers during auction but due to technological changes they no more can do that and it is making them not to take part in the auction as they find it less reliable.

Now lets move to your question:

Except for the niche marketing and transaction cost every aspect is similar to perfect competition.

for the second one you have already answered your question that there is no truly perfectly competitive market in the world, so with the AFA because if we study theoritically there are no barriers in a perfect competitive market, not even any sales cost but if we see in AFA there are different companies which are well known for the brands and have to do advertisements as well.

other than that we can say that exception is always there.

It is more likely to a real and only perfectly competitive market unlike what is said in the book or claimed by the economists.

It is a great example to research on as new theory can be established by that just like the theories given by Keynesian after 1929 depression was an exception to what classical economists said.

Can't say a market of similar product (/ perfect competition) at this rate but the vegetable market could be considered as an perfect example of perfect competitive market. As all products are homogeneous there, having same price with so many buyers and sellers, no transaction cost, no transportation cost or selling costs are there. Buyer are well aware about the product and it prices.

So a vegetable market is the example of perfect competition.