The essence of the question is about competitive markets. This is wrong because the example above is not a competitive market because the entry of goods is not free. And also not all companies can enter this market freely, therefore this market cannot be said to be a competitive market. Because there are only one distributor and no other competitors.
Further Explanation
The competitive market refers to a market characterized by a high level of competition. There are a large number of potential buyers and sellers, all of whom are individually powerless to influence market prices.
Characteristics of Competitive Markets
- There are many independent sellers and buyers.
- Large market liquidity.
- The balance of demand and supply determines the market price, the price for the seller and the price for the buyer.
- Goods must be identical, so it does not allow producers to charge a higher price than the market price.
- There are no external interventions that can affect the performance of market mechanisms.
Types of markets the imperfect competition:
- Monopoly: A single seller dominates the entire market.
- Oligopoly: There are several sellers who have more than two and fewer than ten and act in the competition.
- Monopsony: Many sellers and one buyer.
- Oligopsoni: Many sellers and some buyers.
- Monopolistic: Many sellers with different products and have their own characteristics.
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Competitive Market https://brainly.com/question/933427
Imperfect Competitive Market https://brainly.com/question/933427
Details
Grade: High School
Subject: Business
Keywords: market, competitive, imperfect
