Answer to Question #182144 in Microeconomics for Lilly

Question

Assume that in the market for tulips, there are hundreds of buyers and sellers of tulips, all of the tulips are identical, and it is extremely easy for anyone to become a tulip farmer and sell tulips. This market would most likely be characterized as a

market.

Answer 1

Perfect Competitive market

It is in a perfectly competitive market where there are many buyers and sellers in the market, each company makes a similar product, and there are no barriers to entry into or exit from the market.