In a market market for milk, it is easy for new businesses to enter the market since there are no new barriers to entry. Prices are also determined by supply and demand, so the businesses are not able to set their own price. What type of market structure does the given situation represent?
The given situation represents a perfectly competitive market structure. In a perfectly competitive market, there are numerous buyers and sellers, homogeneous products, ease of entry and exit for businesses, and price determination based on market supply and demand forces.
