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A market characterised by many sellers offering identical products to many buyers is:
APerfect competition
BMonopolistic competition
COligopoly
DMonopoly
Answer & Solution
Correct answer: A. Perfect competition
1. Perfect competition is characterised by many sellers selling identical products to many buyers.
2. Monopolistic competition differs in that products are differentiated rather than identical.
3. Oligopoly has only a few sellers and monopoly only one, so both are ruled out.
4. The answer is perfect competition.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 4 Unit I "Meaning and Types of Markets", p.4_
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