Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for
the wrong answers.
Market: gasoline
large number of buyers
standardized good
full Information
no transaction cost
participants are price takers
Market: barbershop haircuts
large number of buyers
standardized good
full information
no transaction cost
participants are price takers
Homework Answers
Gasoline market is monopolistic competition where there are large number of buyers.
Barbershop haircut is monopolistic competition where there are large number of buyers..
Bicycle market is perfect competition where there are large number of buyers and participants are price takers.Standardized product
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Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
A demand curve slopes downward because: people are only willing to buy more at lower prices....
A demand curve slopes downward because: people are only willing to buy more at lower prices. when people buy more, sellers lower the price. when prices are lower, people think the good is inferior. people want to buy more at higher prices. Which of the following correctly describes market equilibrium? Quantity supplied is equal to quantity demanded. Supply is equal to demand. There may be a shortage. There may be a surplus. От Consider a market that is in equilibrium....
why is the market for used cars not considered to be perfectly competitive? a. the good...
why is the market for used cars not considered to be perfectly competitive? a. the good is standardized b. they buyers are not price takers c. there are always very low transaction cost d. there is complete information
1. Markets and competition In a perfectly competitive market, all producers sell goods or services. Additionally,...
1. Markets and competition In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price True or False: The market for public utilities, such as gas and electricity, does not exhibit the two primary characteristics that define perfectly competitive markets. True False 1. Markets and competition market. In such markets, Identical products, are characteristics of a as well as...
Characteristics of competitive markets The model of competitive markets relies on these three core assumptions:
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 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...
1. Characteristics of competitive markets The model of competitive markets relies on the following four core assumptions:
1. Characteristics of competitive markets The model of competitive markets relies on the following four core assumptions: 1. There must be many buyers and sellers, none of which is large in relation to total sales or purchases. In other words, a few players can't dominate the entire market. 2. Each firm produces and seills a homogeneous product that is indistinguishable from all other firms' products in a given industry. That is, buyers must regard all sellers" products as equivalent, or identical. 3. Buyers and...
1. Markets and competition Identical products, as well as a large number of buyers and sellers,...
1. Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for wheat does exhibit the two primary characteristics that define perfectly competitive markets True O False
In a monopolistically competitive market: There are few firms, each producing a very differentiated product...
In a monopolistically competitive market: There are few firms, each producing a very differentiated product. There is one firm that produces a standardized product. There are many firms producing a differentiated product. There are market participants who are all price takers. In a perfectly competitive model all the following are assumed, except: patents and copyrights that serve as barriers to entry into the industry. a large number of buyers. standardized product. easy entry to and exit from the market. In...
1. Characteristics of competitive markets The model of perfectly competitive markets relies on these four core...
1. Characteristics of competitive markets The model of perfectly competitive markets relies on these four core assumptions: 1. There must be numerous small firms and customers-each player's actions have no effect on price and, thus, trade associations and collusive agreements are not possible. 2. Firms must produce a homogenous product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing for free entry into and exit from the industry. 4. Each firm and each...
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both...
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both market structures. Competitive Markets Monopolistically Competitive Markets Both Market Structures Answer Bank Differentiated goods Few, if any, barriers to entry No one buyer or seller can control prices Many buyers and sellers Identical/homogenous goods Match each example to the market structure it is most likely to belong to. Perfect (pure) competition Monopolistic competition Oligopoly Monopoly Answer Bank Carl's Taco Truck, one of many food...
SOVO Help Save & EXIT Which of the following characteristics lead to a downward-sloping demand curve?...
SOVO Help Save & EXIT Which of the following characteristics lead to a downward-sloping demand curve? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. An increase in purchasing power as market price decreases Diminishing marginal utility Increasing opportunity costs Increasing marginal benefit Diminishing preferences for a particular good A decline in the price of a related good How is a...
A demand curve slopes downward because: people are only willing to buy more at lower prices. when people buy more, sellers lower the price. when prices are lower, people think the good is inferior. people want to buy more at higher prices. Which of the following correctly describes market equilibrium? Quantity supplied is equal to quantity demanded. Supply is equal to demand. There may be a shortage. There may be a surplus. От Consider a market that is in equilibrium....
1. Markets and competition In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of these two characteristics, both buyers and sellers in perfectly competitive markets are price True or False: The market for public utilities, such as gas and electricity, does not exhibit the two primary characteristics that define perfectly competitive markets. True False 1. Markets and competition market. In such markets, Identical products, are characteristics of a as well as...
1. Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for wheat does exhibit the two primary characteristics that define perfectly competitive markets True O False
In a monopolistically competitive market: There are few firms, each producing a very differentiated product. There is one firm that produces a standardized product. There are many firms producing a differentiated product. There are market participants who are all price takers. In a perfectly competitive model all the following are assumed, except: patents and copyrights that serve as barriers to entry into the industry. a large number of buyers. standardized product. easy entry to and exit from the market. In...
1. Characteristics of competitive markets The model of perfectly competitive markets relies on these four core assumptions: 1. There must be numerous small firms and customers-each player's actions have no effect on price and, thus, trade associations and collusive agreements are not possible. 2. Firms must produce a homogenous product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing for free entry into and exit from the industry. 4. Each firm and each...
Classify each market characteristic as being a trait of competitive markets, monopolistically competitive markets, or both market structures. Competitive Markets Monopolistically Competitive Markets Both Market Structures Answer Bank Differentiated goods Few, if any, barriers to entry No one buyer or seller can control prices Many buyers and sellers Identical/homogenous goods Match each example to the market structure it is most likely to belong to. Perfect (pure) competition Monopolistic competition Oligopoly Monopoly Answer Bank Carl's Taco Truck, one of many food...
SOVO Help Save & EXIT Which of the following characteristics lead to a downward-sloping demand curve? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. An increase in purchasing power as market price decreases Diminishing marginal utility Increasing opportunity costs Increasing marginal benefit Diminishing preferences for a particular good A decline in the price of a related good How is a...
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