Which of the following are perfectly competitive markets? Market Tomato Growing Coffee vendor Manufacturing computers Constructing new homes Perfectly Competitive? Yes Yes No Yes Number of Firms Few Many Few Many Type of Product Identical or Differentiated Identical Differentiated Identical Ease of Entry High High Low High

Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?

You read in a business magazine that farmers are reaping high profits. With the theory of perfect competition in mind, what do you expect to happen over time (in the long run) to each of the following?  The profits of farmers based on what happens to the price, what do you think will happen to the profits earned by the firms/farmers that previously existed in the market?

Astro Computers makes onboard vehicle control computers for the Tesla. The production department has gathered data on the costs of several yearly production levels and asked you to help interpret these for them.  1. The data for Astro appear in the graph below. The COO asks what production level he should set for the coming year, if Astro operates in a perfectly competitive market. (the graph is in the picture) 2. Is Astro earning “excess profit” (explain what that means if you think they are) and how other firms will react when they see Astro’s performance? 3. The production department has also done a bit of research on other firms operating in the market for onboard control computers. The graph below shows the relative sizes and cost structures of the four largest firms in the market (Data, Astro, Consolidated and BCS); these four firms combined account for 35% of business in the market for onboard control computers.  There are over fifteen firms that supply onboard control computers…

Which of the following would be the closest to a perfectly competitive market? O Soda Smartphones Wheat O Jeans

Based on the graph: a. Is this market more efficient or less efficient compared to perfect competition. Give two reasons for your answer. b. If this were a perfectly competitive market, what would be the market price? What would be the efficient scale of the firm?

Which of the following can be said the best example of a perfectly competitive market? A) B) C) D) O athletic shoes O farming Osoft drinks O diamonds.

According to the graph below answer the following questions: 1. What is the profit-maximizing quantity 2. What is the total revenue at that quantity 3. What is the total cost at that quantity 4. How much is the total profit at that quantity Perfect Competition with a price of $18. Price $25 $18 $15 70 Quantity 130 MC 160 ATC

Analyze the likely effects of a perfectly competitive market on price, quality, and innovation of goods and services?

2 O connect Micro- Perfect Competition Mc Graw Hill TUI CUIII! There are only a few sellers of corn in the market. 3 Economics Mentor Oops -- this isn't correct. Corn is a product produced globally. There are thousands, if not hundreds of thousands, of individual farmers. Correct Answer: There are many sellers (and, of course, many buyers). Kim Is the corn that you produce different from your competitors? What kind of product do you sell? Undifferentiated (homogeneous) Differences exist (heterogeneous) esc K James Submit D →> C