Asked by Tanner Lloyd on May 16, 2024
Verified
The market for breakfast cereal contains hundreds of similar products,such as Froot Loops,cornflakes,and Rice Krispies,that are considered to be different products by different buyers.This situation violates the perfect competition assumption of:
A) many buyers and sellers.
B) a standardized product.
C) ease of entry.
D) ease of exit.
Standardized Product
Goods or services that are uniform in quality and performance across different producers and can be easily substituted for one another.
Breakfast Cereal
A type of food made from processed grains, often eaten as the first meal of the day.
- Explain the concept of standardized products in contrast to differentiated products in market structures.
Verified Answer
BF
Brandon Family Christian GardenMay 16, 2024
Final Answer :
B
Explanation :
The perfect competition assumption of a standardized product is violated in this situation, as there are many similar products that are considered to be different by different buyers. The other options (many buyers and sellers, ease of entry, and ease of exit) are not necessarily violated by the presence of similar breakfast cereal products.
Learning Objectives
- Explain the concept of standardized products in contrast to differentiated products in market structures.
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