A large city has nearly 500 restaurants, with new ones entering regularly as the population grows. The city decides to limit the number of restaurant licenses to 500. Which characteristics of this market are consistent with perfect competition and which are not? Is this restaurant market likely to be nearly competitive? Explain your answer. Which of the following characteristics are consistent with perfect competition? (Check all that apply.) A. A limited number of restaurant licenses. B. A market with 500 restaurants. C. A growing population. D. New restaurants regularly entering. E. An active city government.

A large city has nearly 500 restaurants, with new ones entering regularly as the population grows. The city decides to limit the number of restaurant licenses to 500. Which characteristics of this market are consistent with perfect competition and which are not? Is this restaurant market likely to be nearly competitive? Explain your answer. Which of the following characteristics are consistent with perfect competition? (Check all that apply.) A. A limited number of restaurant licenses. B. A market with 500 restaurants. C. A growing population. D. New restaurants regularly entering. E. An active city government.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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