Question

Finding a life partner is a complicated process that may take many years. It is hard to think of this process as being part of a very complex market, with a demand and a supply for partners. Think about how this market works and some of its characteristics, such as search costs. Would you consider it a perfectly competitive market?

Short answer

The market for a life mate is a complicated one. Because all of the enterprises produce similar items, it would not be called a perfect competitive market. It would be most suited for a monopolistic market.

Step-by-step solution

Perfect Competition : 

Perfect competition is a market system with a high number of customers and sellers, buying and selling homogenous items, and having free entrance and exit.

Explanation :

In a completely competitive market, enterprises confront horizontal demand and, in the long term, there is no economic profit. The market for a life mate is a complicated one. Because all of the enterprises produce similar items, it would not be called a perfect competitive market.

It would be most suited for a monopolistic market when businesses are not manufacturing identical products and have the following characteristics:

a) The market has a high number of consumers and sellers, and each firm produces a product that is slightly different from the others. As a result, the goods are not uniform.

b) Because the enterprises produce a variety of items, they must pay selling charges in order to promote sales. In the market, there are generally few restrictions for entering and exiting.

c) Both buyers and sellers have little knowledge of the product's pricing. Because of the product's uniqueness, it's difficult to compare pricing. The quality, color, and size of the items available on the market vary.

b) The market is on a downward trend. Where there is no economic profit, the enterprises have complete control over the pricing.