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________ is the best example of a perfectly competitive market.a.diamondsb.athletic shoesc.soft drinksd.farming

Question

__________ is the best example of a perfectly competitive market.

a. diamonds
b. athletic shoes
c. soft drinks
d. farming

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Solution

The best example of a perfectly competitive market from the given options is "farming".

Here's why:

A perfectly competitive market is characterized by many buyers and sellers, products that are similar in nature, and an easy entry and exit from the market.

a. Diamonds - The diamond industry is not perfectly competitive because there are relatively few sellers who can influence the price.

b. Athletic shoes - This market is not perfectly competitive because the products are differentiated (Nike shoes are different from Adidas shoes, for example).

c. Soft drinks - This market is also not perfectly competitive because the products are differentiated (Coca-Cola is different from Pepsi) and there are relatively few sellers.

d. Farming - This is the best example of a perfectly competitive market among the given options. There are many independent sellers (farmers), the product is similar (wheat is wheat, regardless of the farmer), and there are many buyers.

This problem has been solved

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