which is a real life example of a market that is close to perfect competition a.a computer monopoly b.an oil and gas cartel c.farmers market d.public school system.
A real-life example of a market that is close to perfect competition is a farmers market.
A real-life example of a market that is close to perfect competition is option C, a farmers market.
To determine this answer, we need to understand the characteristics of perfect competition and how they align with each option:
a. A computer monopoly: A monopoly refers to a market where there is only one seller, resulting in no competition. In contrast, perfect competition requires many buyers and sellers, making this option inconsistent with the characteristics of perfect competition.
b. An oil and gas cartel: A cartel involves a group of producers who come together to influence prices and restrict competition. This behavior is fundamentally opposite to perfect competition, where no single entity can influence the market price. Hence, this option doesn't align with perfect competition either.
c. Farmers market: A farmers market typically consists of numerous small-scale farmers who sell their crops directly to consumers. This type of market is more likely to exhibit the characteristics of perfect competition, with a large number of buyers and sellers, low barriers to entry and exit, homogeneous products (similar quality produce from different sellers), and perfect information available to buyers and sellers.
d. Public school system: The public school system is not a market but rather a government-driven provision of education services. It does not involve buyers and sellers interacting through market mechanisms, so it is not an example of perfect competition.
Therefore, among the given options, a farmers market best aligns with the characteristics of a market close to perfect competition.