In a perfectly competitive market, all producers sell goods or services. additionally, there are buyers and sellers. because of these two characteristics, both buyers and sellers in perfectly competitive markets are price .true or false: the market for public utilities, like gas and electricity, does not exhibit the two primary characteristics that define perfectly competitive markets.

The answer is True. Public utilities do not exhibit the primary characteristics of a perfectly competitive market. Monopoly is the type of market structure for public utilities like gas and electricity since it only has one producer and many consumers. As a result, the frequency of buyers does not change the price of products and services.

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fatimakincsem fatimakincsem · Answer 2 · 2019-03-14T12:55:23+01:00

Yes True. The characteristics of a perfectly competitive market are as follows:

There are large buyers and sellers

Products are homogeneous, means the product or service must have the same characteristics.

Buyers and Sellers have perfect complete knowledge about the quality, price and utility of the product.

No producer can take advantage of the price raise. The only advantage they can take is by lowering the price slightly.

But in this example, gas or electricity producers are the monopolistic companies in a country. They take advantage of being the only one producer of the product or service. They can easily manipulate the market prices. Thus, these producers don't fall in the category of competitive marketplace.