1. Characteristics of competitive marketsThe 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 sources 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 thisproblem to a market cannot maintain competition in the long run without free entry.Identify whether or not each of the following scenarios describes a competitive marke along with the correct explanation of why or why not.Competitive?ScenarioScholastik Inc. owns the U.S. copyright to a popular book series. It is the only companywith the legal right to publish books in the series in the United States.In a small town, there are two providers of broadband Internet access: a cable companyand the phone company. The Internet access offered by both providers is of the samespeed.Several stores in the mall sell hooded sweatshirts. Each store's sweatshirts reflect thestyle of that particular store. Additionally, some stores use higher-quality cotton thanothers, which is reflected in the apparel's prices.Dozens of companies produce plain white socks. Consumers regard plain white socks asidentical and don't care who manufactures thair socks.

Monopoly: A monopoly exists when there is only one seller or producer of a particular product or…

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. ources must be fully mobile, allowing for free entry into and exit from the industry. 3. Firms and The first two conditions imply th all consumers and firms are price takers. While the third is not necessary for price taking behavior, assume for this problem u a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, Scenario Scholastik Inc. awns the U.S. copyright to a popular book series. It is the only company with the legal right to publish books in the series in the United States. In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same with the correct explanation of why or why not. Competitive?

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. ources must be fully mobile, allowing for free entry into and exit from the industry. 3. Firms and The first two conditions imply th all consumers and firms are price takers. While the third is not necessary for price taking behavior, assume for this problem u a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, Scenario Scholastik Inc. awns the U.S. copyright to a popular book series. It is the only company with the legal right to publish books in the series in the United States. In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same with the correct explanation of why or why not. Competitive?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 this problem that a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Scenario There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match…
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The graph shows the market for smartphones . On the graph, draw a point at the market equilibrium and label it 1. Now draw a curve to illustrate what happens in the market for smartphones if more firms produce smartphones while all other influences on the market remain the same. Label the curve S1 Draw a point at the new market equilibrium and label it 2. >>> Draw only the objects specified in the question.
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1) In the market for smart phones, explain how will thefollowing statement impact the equilibrium price andquantity?Average incomes increase and new technology improvesproductive efficiency(Make sure that you also consider the effect on demandand supply curves where appropriate)
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Resources are allocated efficiently when O a. the exchange value of the resources to demanders equals the opportunity cost of the resources. Ob. the marginal benefit to demanders of the resources in the goods they purchase is equal to the marginal cost to suppliers of the resources they use in producing the goods. c. firms produce the quantity of output at which price is equal to marginal cost. d. a and b e. a, b, and c