Idea of perfect competition


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

A. There are many Italian restaurant owners in town. They order pasta from many different firms. It does not matter to them what brand the pasta is, as long as the deliveries are on time.

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

C. There are many ice cream shops in town and each one sells unique flavors of ice cream. No two shops sell the same flavors of ice cream.

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

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Macroeconomics: Idea of perfect competition
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