Rosa loves fresh tomatoes. In August, she goes to each farmers market

QUESTION

Rosa loves fresh tomatoes. In August, she goes to each farmers market stall, squeezing tomatoes to check for ripeness, smelling them for sweetness, looking for blotches.

Since each vendor charges about the same price, she can be sure of getting the best quality. Which of the following is benefitting Rosa?
A) consumer sovereignty
B) perfect competition
C) monopolistic competition
D) oligopoly
E) buyer-seller irrationality

ANSWER

Answer: B
Explanation: B) Rosa is an informed buyer choosing among interchangeable products offered by sellers too small to dictate the price.