Question

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. a farmers’ market

D. a public school system

Answer 1

C. A farmers market

A. Any monopoly is basically without competition.
B. Cartels set an artificial price for their products ensuring maximum or near maximum profits.
D. A public school system has artificial barriers such as government regulation and distances. So there is no real competition.

While farmers markets are made of individual sellers. They have very little regulation or barriers on their prices. So they market out of their own self interest.