The two characteristics of a competitive market are 1) many buyers and sellers in themarket and 2) the goods offered by the various sellers are highly differentiated.O TrueFalse

There are 2 forms of market: Perfect and Imperfect market form. These includes market like: Perfect…

Answered: a competitive market

Business

Economics

a competitive market

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: Price Takers And The Competitive Process

Section: Chapter Questions

Problem 13CQ

See similar textbooks

Related questions

Q: describe your ideal market

A: A ideal market is one with perfect competition, with prices determined only by demand and…

Q: demand curve

A: Demand generated by all the consumers during specific duration at give prices depicts the demand.…

Q: Market equilibrium: Market equilibrium price:

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: a Quantity In the provided graph, the equilibrium point in the market is where the S and D curves…

A: Total revenue, alternatively referred to as gross revenue, is the sum of your recurring (MRR) and…

Q: What is the market situation exist when there are many buyers and many sellers? *

A: There are many type of market in the economy like Perfect competition , Monopoly , Oligopoly and…

Q: What conditions must be met for a market to exist?

A: There are different forms of market, the one discussed in this question is the perfect competitive…

Q: Which of the following markets comes closest to perfect market?

A: In a perfect market, there are large number of sellers selling identical products and charging…

Q: What other name is supply point denoted by? Origin Demand Destination End point(s)

A: The sum of a product that companies, manufacturers, laborers, financial asset suppliers, and other…

Q: Instructions: Enter your responses as a whole number. a. What price will prevail in this market? b.…

Q: supply creates its own demand.

A: Answer Classical economists believe that the market is usually straightforward due to the value…

Q: Draw and carefully label the market for honey. How would a disease reducing the mobility of bees…

A: The market for honey can be shown using demand curve and the supply curve. As usual the demand curve…

Q: Price Quantity Supplied 40 300 80 600 100 900 120 1,200 1,500 140 A. Create a supply curve

A: Definition of supply curve : It graphically shows the direct relationship between the price and…

Q: difference between movement along the demand and supply curve due to a change

A: The following problem has been answered as follows:

Q: What represents the amount of some good or service a producer is willing to supply at each price? A…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Do business firms operating in competitive markets have a strong incentive to serve the interest of…

A: The perfect competition is a market condition in which there are many producers and the production…

Q: plotting the following hypothetical market demand and supply schedule in one group.

A: Demand for a commodity is the desire backed by ability and willingness to pay the given price during…

Q: How to Cultivate selected demand?

A: Productivity and profitability can be increased by implementing the following strategies: Combining…

Q: Shifts in the market supply curve will?

A: Supply refers to the quantity of the good which the producers are willing to produce and offer for…

Q: What is a perfect market

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Outline the benefits of 'competitive markets'

A: Competition among rivalry firms will create a lot of positive impacts.

Q: The decrease in demand will lead to a decrease in the price of equilibrium as well as the quantity…

A: Demand is the volume of goods and services that consumers are willing to buy, at a certain price. As…

Q: As more and more people bought home computers during the 1990s, the demand for access to the World…

A: Answer: In the 1990s, the demand for the internet increased as well ads the supply also increased.…

Q: What is demand curve? What are three common approaches that marketers often use to determine the…

A: In economics, a demand curve is a graphic representation of the connection between product price and…

Q: . Factor which affects market demand but not individual demand can be: (a) Number of consumers in…

A: # Individual demand refers to the concept based on microeconomics whereby we study the demand of a…

Q: What could be possible problems of consumer behavior in a competitive market.

A: Consumer behavior is the study that analysis the process of purchasing the goods and services during…

Q: Condition where buyers and sellers interact with each other to determine the price and quantity of a…

A: Price keeps changing in the market due to several reasons. Inflation, change in money supply etc.…

Q: market demand

A: Demand is defined as the quantity of the good or service demanded by a consumer at a particular…

Q: Define the term Market Trend?

A: A market trend usually signifies the direction of the financial market over a period of time. These…

Q: Refer to the accompanying figure. Assume the market is originally at point Y. Movement to point X is…

A: Supply and demand refers to the economic forces of the free market that determine what producers are…

Q: Factors affecting change in demand

A: Demand is a functional relationship between quantity demanded and various factors affecting demand.

Q: 1. List 10 new market demand that people need in their lifestyle.

A: We know that Market demand portrays the interest for a given item and who needs to buy it. This is…

Q: What is the likely demand for the product?

A: Meaning of Microeconomics: The term microeconomics refers to that situation under which the…

Q: Justify or criticise markets for any two of the following: kidneys, children for adoption, votes,…

A: Markets are important for countries of the world. The economy can function only if the market…

Q: Economics gives managers a framework for understanding market demand.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Why are participants in competitive markets called price takers?

A: A market is the collection of buyers and sellers. It is the system in which buyers and sellers can…

Q: A change in resources. Change in prices of other goods. A change in producer expectation. How are…

A: Supply refers to the level of output that produced at the particular price level. For example, the…

Q: Explain why the price in competitive markets settles down at the equilibrium intersection of supply…

A: In an economy, there is a difference in the pricing policy of competitive market and non-competitive…

Q: Do you agree with this statement: “As price goes up, demand goes down”?

A: Demand is defined as the amount of a product that a buyer is willing and able to buy at each price…

Q: On a supply-and-demand diagram, show equilibrium price, equilibrium quantity, and the total revenue…

A: The demand curve is a downward sloping curve indicating a negative relationship between price and…

Q: What are these mismatched trends telling us about how demand and supply work in the market?

A: Oil is the most versatile commodity, being used in everything from plastics to asphalt to fuel in…

Q: How would each of the following affect the market supply curve for corn? 1. A new and improved crop…

A: Answer: The market supply curve is upward sloping that shows the positive relationship between price…

Q: The point where the demand and the supply curve intersects each other in the market is known as…

A: The supply and demand are the two market forces which results in the specific market price in the…

Q: Draw a supply and demand curve for local fast food. A new Chick-fil-A, Chipotle, and McDonald's open…

A: Opening up more stores increases number of sellers, shifting supply curve of fast food rightward.…

Q: Supply and demand theory

A: Supply theory – According to the law of supply, the sellers will sell more of a good at the higher…

Question

The two characteristics of a competitive market are 1) many buyers and sellers in the
market and 2) the goods offered by the various sellers are highly differentiated.
O True
False

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Mario's Pizza is the only pizza place in Sorrento City. The graph shows the market demand curve for pizza in Sorrento City. Mario's Pizza is a perfect price discriminator. What is the marginal revenue from the 20th pizza sold in an hour? The marginal revenue from the 20th pizza sold in an hour is O A. $300 O B. - $4 O C. $16 O D. $15 40- 35- 30- 25- 20- 15- 10- 5- 0+ -0 Price (dollars per pizza) -10 5 10 15 20 25 30 Quantity (pizzas per hour) D 35 40 -S
Food prices in sports stadiums are notoriously high because there is a limit on the numberof vendors that can operate in the stadium, which is a barrier to entry. In 2017, the AtlantaFalcons, an American football team, lowered the barriers to entry by allowing more foodvendors into their stadium. If the market for food in the stadium follows our perfect marketassumptions, what might you expect happened after this change? Do not worry about theunderlying facts of each statement, only whether it makes economic sense given our model.(Select one or more.)(a) The price of food in the stadium decreased because of an increase in supply.(b) The price of food in the stadium decreased because of an increase in demand.(c) The quantity of food sold decreased because of a movement of the supply curve.(d) The quantity of food sold increased because of a movement along the demand curve.(e) Profit per vendor decreased because of lower food prices.(f) Profit per vendor increased because of greater…
Pls help with below homework. Fred owns his own specialty burger food truck. He's deciding on a price for his new burger called The Best Burger. Fred decides hel use markup pricing, and wants to mark it up 30%. The cost of goods for each burger is $4.50 and he can make up to 110 burgers a day. What wil the price of each burger be using markup pricing? Round to the nearest cent. O $15.00 O $6.43 O $5.85 O $7.65 O $7.07
2. Kate decided to establish a small coffee company named Kapeko. However, Mary's Coffee shop has already dominated the market. Now, the profit of Mary's Coffee shop and Kapeko is dependent on the decision of Kate to enter the market and how Mary's Coffee shop will set the price for her coffee. Below is diagram describing their possible actions.
The consumers’ surplus when the market is perfectly competitive and when itsmonoplized. Show in graph and explain.
which market has free entry
Discuss in details the concept of efficient pricing, illustrate and show the equilibrium.
Suppose the market for fresh pork is a competitive market. Initially, it is operatingat its long-run competitive equilibrium at a market price of $50.Owing to the spread of COVID-19, many people turn to buying frozen meat oncea week rather than fresh pork every day. As a result, the market price of fresh porkreduces to $30.a. With the aid of a pair of market-and-firm diagrams, illustrate how thiswould affect the equilibrium price and quantity in the fresh pork market andthe output of a typical butcher of fresh pork in the short-run.b. Suppose, for the situation in (a), the average cost of a typical butcher offresh pork is $40, which includes $15 on buying meat from suppliers, $12on paying rent, $8 on paying hourly wages on staff, and $5 on other costs.Explain whether a typical butcher should shut down in the short run.
Figure 11.4 Firm A Firm B MC ATC MC ATC D-M MR QUANTITY QUANTIT Firm C Firm D MC ATC ATC MR MR QUANTITY QUANTIT Which of the fırms in Figure 11.4 is using marginal cost pricing? Firms B and D. O All of the firms are using marginal cost pricing. Firm B only. Firm C only. PRICE OR COST PRICE OR COST PRICE OR COST PRICE OR COST
A mechanism that brings about an interaction between buyers and sellers is best described as: O a. The economy O b.A resource O C. A market O d. An industry
2. There are two brands of cigarettes X, Y. The demand for each is as follows: Qx = 80 – 2p Qy = 60 – 0.5p Assume that the marginal cost of producing cigarette X is $10, the marginal cost of producing cigarette Y is $8, and that the market for both cigarettes is perfectly competitive. Assume that each pack of cigarette X smoked does $5 worth of health damage to the smoker, and a total of $4 worth of health damage to the smoker's neighbors via second-hand smoke. Each pack of cigarette Y smoked does $6 worth of health damage to the smoker, and $5 health damage to the smoker's neighbors. (a) Plot the private demand curve and private supply curve for both cigarettes on separate axes. (b) What is the privately efficient quantity demand of both cigarettes? (c) Add the public supply curves to the graphs you plot in (a). (d) What is the socially efficient quantity demand of both cigarettes?
What issues do the online businesses face? How are they similar to offline competition? How are these issues resolved (market v. nonmarket) in the online and offline business? Use the theory fo the 4 Is. Issues are understood as moral concerns, consequences, justice, and rights at stake which can be resolved by either market or non-market action.