What is perfect competition in economics?

A market structure in which a large number of firms all produce the same product

Available Options Are:

Weighted average cost method

Last-in, first-out method

First-in, first-out method

Specific identification method

First-in, first-out method

Explanation:

The reason is that the FIFO method is the default method for determining the basis of shares of stock being sold. So if the Holly doesn't maintains the record to track the basis of shares she purchased then FIFO method is the best solution to find the basis.

The LIFO and weighted average method are not eligible method under the tax rules so the only option left is Specific identification method which can only be used if the person maintains records to track the basis of shares he purchased which is not the case here.

So the only option left is FIFO method.