Which of the following industry scenarios best illustrates the idea of perfect competition?

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Which of the following industry scenarios best illustrates the idea of perfect competition?

A. There is one theater in town. Moviegoers have no other choices.

B. A software company sells its products at a reduced price to students and teachers.

C. A cable television company has gained a large market share because of its low monthly fees and great range of channels.

D. There are 30 pasta producers who sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can.

2007-10-17 10:38:15 · 3 answers · asked by simon c 1 in Social Science ➔ Economics

3 answers

D. Competition = many sellers and buyers

2007-10-17 11:12:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋

D is perfect competition

2007-10-17 12:00:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋

C only.

2007-10-17 10:43:16 · answer #3 · answered by Irish 7 · 0⤊ 1⤋