True or false: the market for public utilities, like gas and electricity, does exhibit the two primary characteristics that define perfectly competitive markets.

The statement above is FALSE.
The market for public utilities tends to be monopolistic in nature, that is, there is one producer and many consumer. The entry barrier is usually high and a single manufacturer always act as the price d.eterminator.
In a perfectly competitive market, there are many producer and many consumers and all of them determine the prices of commodities.

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pristina pristina · Answer 2 · 2018-10-07T19:31:45+02:00

Answer: The statement is False

Explanation:

Two primary characteristics of a perfectly competitive market are,

a. Free entry and exit

b. Price takers

However, the market for public utilities like gas and electricity does not exhibit these two characteristics. Entry in these markets is often restricted. In addition to this, the price for these goods is not determined in the industry by the forces of demand and supply. They are set by the government or any other central agency.

Thus, the statement is false.