What type of market structure has the largest number of suppliers?

Economics Dec 17, 2020

Expert Solution

Perfect competition has the largest number of suppliers. Of the four levels of competition, it is one of the most difficult to achieve, because of the characteristics of the system:

consumer and supplier knowledge of product and price.
limited entry and exit difficulty.
companies make the same products.
large number of companies without any being dominant.

Agriculture markets are the closest example to perfect competition.

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