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Industry meets conditions of a perfectly competitive market

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What industry meets the conditions of a perfectly competitive industry and how the individual firms would respond to an increase in the market demand for the product.

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A good example of a near perfectly competitive industry would be agriculture. The structure of the markets would meet the following five criteria:

1. All firms sell an identical product.
2. All firms are price takers.
3. All firms have a relatively small market share.
4. Buyers know the nature of the product being sold and the prices
charged by each firm.
5. The industry is characterized by freedom of entry and exit. ...

Solution Summary

The 320 word cited solution explains the type of criteria for a near perfect competitive industry with examples.