Asked by Gbeho Rodrigue on Jul 09, 2024

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Which of the following firms is the closest to being a perfectly competitive firm?

A) An avocado farmer in California
B) Microsoft Corporation
C) Ford Motor Company
D) An aerospace company

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, all products are similar, and there are no barriers to entering or exiting the market.

Avocado Farmer

An individual or entity engaged in the cultivation and production of avocados, managing orchards and participating in the agricultural market.

  • Identifying how competitive forces in the market affect a business's decisions regarding price setting and output levels.
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MA
Marie AhernJul 12, 2024
Final Answer :
A
Explanation :
An avocado farmer in California is the closest to being a perfectly competitive firm because the market for avocados is characterized by many producers, a homogeneous product, and easy market entry and exit, which align closely with the characteristics of perfect competition.