2. You are traveling by taxi in a South American city.

When the taxi stops at a stoplight, you observe several people walking among the stopped cars offering apples for sale. Your taxi driver rolls down the window and purchases an apple from one of the vendors. You ask the taxi driver, “Why did you buy the apple from that vendor?” The driver replies, “I often buy from that vendor because the apple is always of excellent quality.” In what market structure are the vendors operating at that site?

Why?