A. Explain relevant theory Identify all the characteristics of perfect competition and explain how each of them contribute to the market being "perfect". Use diagrams to illustrate your answer. This section of your answer only explains relevant theory. Make sure you understand and explain these concepts correctlyThe Aalsmeer flower market is almost perfectly competitive. The world's largest flower auction takes place in Aalsmeer, a small town in the Netherlands. Each week, producers sell over 100 million flowers there. In fact, over one-third of all the flowers sold in the world pass through Aalsmeer. Because the Aalsmeer market serves thousands of buyers and sellers, it is one of the best examples of a competitive market you will ever find. The supply comes from approximately 6,000 growers worldwide. More than 2,000 buyers attend the auction to purchase flowers. Aalsmeer uses a method known as a Dutch auction to determine the price for each crate of flowers sold. Most people think of an auction as a situation in which two or more individuals try to outbid each other. However, in Aalsmeer that process is reversed. As each crate of flowers goes on sale, the price on a huge board starts at 100 euros and then goes down until the lot is sold. This special kind of auction was invented here, and it is a very efficient way of getting the highest price out of the buyer who wants the lot the most