Why must perfectly competitive markets always deal in commoditities?

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2026-03-14 15:21

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Perfectly competitive markets deal in commodities because these markets are characterized by numerous buyers and sellers trading identical products. This homogeneity ensures that no single participant can influence the market price, as the goods are interchangeable and consumers have perfect information. The uniformity of commodities facilitates competition based on price rather than product differentiation, which is a key feature of perfect competition.

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