Question

which of following is likely ti be an example of perfect competitive market

Answer 1

A Perfect Competition market is that type of market in which the number of buyers and sellers is very large, all are engaged in buying and selling a homogeneous product without any artificial restrictions and possessing perfect knowledge of the market at a time.

Examples -

Agricultural markets are examples of nearlyperfect competition as well. Imagine shopping at your local farmers' market: there are numerous farmers, selling the same fruits, vegetables and herbs. You can easily find out the prices for the goods, but they are usually all about the same.

Foreign Exchange Markets In this market, traders exchange currencies. As there is only one US Dollar, one Great British Pound, and one Euro, the product is homogenous. Additionally, there are many sellers and buyers in the market. Furthermore, it is easy to buy some currency, and easy to sell it too. With that said, there is an exception in the fact that traders may not have ‘perfect information’. Normal buyers and sellers may be at a disadvantage compared to professional traders who do it for a living. Even so, it is one of the closest examples of perfect competition wecan find today.

Online shopping - We may not see the internet as a distinct market. However, the internet is home to many buyers and many sellers. For instance, we only need to look at eBay as an example. In fact, this is exactly what a market is although not on a physical level.

( Note - Didn't have options jut providing with the approprate examples so that you can best choose with your options ) Thanks