  Home Study tools

 My courses
 My books Career Life Study Pack 

Find solutions for your homework Search

home / study / business / economics / economics questions and answers / 1. characteristics of competitive markets the model of competitive mark…

Question:  
1. Characteristics of competitive markets
The model of comp… Post a question
Answers from our experts for your tough
homework questions
(6 bookmarks)

1. Characteristics of competitive markets Enter question

The model of competitive markets relies on these three core
assumptions:

1. There must be many buyers and

sellers�a few players can't dominate the market.
Continue to post
2. Firms must produce an identical
product�buyers must regard all sellers' products as
equivalent.
20 questions remaining
3. Firms and resources must be fully
mobile, allowing for free entry into and exit from the
industry.

The first two conditions imply that all consumers and firms are
price takers. While the third is not
necessary for price-taking
behavior, assume for this problem that a market cannot maintain
competition
Snap a photo from your
in the long run without free entry.
phone to post a question
Identify whether or not each of the following scenarios
describes a competitive market, along with the We'll send you a one-time dow
correct explanation
of why or why not. link

The government has granted a patent to a pharmaceutical a.yes,meets

company
for an experimental AIDS drug. That company is the
all 888-888-8888 Text m
only firm
permitted to sell the drug.
assumptions
B.no,no free By providing your phone number, you agree to receive a
entry automated text message with a link to get the app. Stand
messaging rates may apply.
C.no, not
many sellers
D.No, not an
identical My Textbook Solutions
product

In a small town, there are two providers of broadband Internet a.yes,meets

access: a cable company and the phone company. The all
Internet access
offered by both providers is of the same speed. Add a Add
assumptions
textbook textb
B.no,no free
Introductor...
entry
C.no, not 14th Edition
many sellers View all solutions
D.No, not an
identical
product

In a major metropolitan area, one chain of coffee shops has a.yes,meets

gained a large market share because customers feel its coffee all
tastes better than that of its competitors. assumptions
B.no,no free
entry
C.no, not
many sellers
D.No, not an
identical
product

Dozens of companies produce plain white socks. Consumers a.yes,meets

regard
plain white socks as identical and don't care who
all
manufactures
their socks.
assumptions
B.no,no free
entry
C.no, not
many sellers
D.No, not an
identical
product

Videos
 Solution Video
 Home
0
Study tools

0
My courses
 My books Career Life Study Pack 

07:55

Expert Answer

Peter Kennedy answered this

Was this answer helpful? 107 2
2,010 answers

View comments (3)



Practice with similar questions

Q: Homework (Ch 14) 1. Characteristics of competitive markets The model of competitive markets relies on these three
core assumptions: 1. There must be many buyers and sellers-a few players can't dominate the market. 2. Firms must
produce an identical product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be
fully mobile, allowing free entry into...

A: See answer 100% (2 ratings)

Q: 1. Characteristics of competitive markets

The model of competitive markets relies on these three core
assumptions:
1.
There must be many buyers and sellers—a few players can't
dominate the market.
2.
Firms must produce an identical
product—buyers must regard all
sellers' products as equivalent.
3.
Firms and resources must be fully mobile, allowing
free entry
into and exit...

A: See answer 100% (5 ratings)

Show more 

Questions viewed by other students

Q: The following graph shows the daily market for small cardboard
boxes in New York City.
Suppose that Falero is one of more than a hundred competitive
firms in New York City
that produce such cardboard boxes.
1) Based on the previous graph showing the daily
 market demand
and supply curves, the price Falero must take as given is
$________.
 Fill 
in the price and the total, marginal...
Home Study tools
 My courses
 My books Career Life Study Pack 

A: See answer 95% (487 ratings)

Q: Hello i am stuck on this question, thank you for the help

A: See answer 96% (70 ratings)

Show more 

COMPANY

LEGAL & POLICIES

CHEGG PRODUCTS AND SERVICES

CHEGG NETWORK

CUSTOMER SERVICE

© 2003-2021 Chegg Inc. All rights reserved.