Answered: Which of the following can be said the…

Which of the following can be said the best example of a perfectly competitive market? A) B) C) D) O athletic shoes O farming Osoft drinks O diamonds

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 7SCQ: If new technology in a perfectly competitive market brings about a substantial reduction in costs of...

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Which of the following can be said the best example of a perfectly competitive market? A) B) C) D)
O athletic shoes
O farming
Osoft drinks
O diamonds.

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Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?
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