Identical products, as well as a large number of buyers and sellers, are characteristics of which type of market structure?

• A. Perfect competition
• B. Monopolistic competition
• C. Oligopoly
• D. Monopoly

Answer: (A)

Verified step by step guidance

1. Understand the key characteristics of different market structures: Perfect competition, Monopolistic competition, Oligopoly, and Monopoly.
2. Recall that perfect competition is defined by having many buyers and sellers, with identical (homogeneous) products, and free entry and exit in the market.
3. Recognize that monopolistic competition has many sellers but differentiated products, not identical ones.
4. Note that oligopoly involves a few sellers, often with either identical or differentiated products, but not a large number of sellers.
5. Identify that monopoly has a single seller with no close substitutes, so it does not have many buyers and sellers or identical products.