Chapter 11R, Problem 2CTQ

To determine

The market traits that is different from perfect competition for hamburgers.

Explanation of Solution

.The firm selling hamburgers follows some traits of perfect competition type market structure as mentioned below:

• The product is same i.e. hamburger
• There are many sellers and many buyers.
• Low barriers to enter or exit the market.
• The

Following are the traits that violate the traits of a perfect competition for hamburgers in market area:

• Product can be modified as per the buyer’s preference for taste.
• Hamburgers are not sold at same prices as it can be expensive if additional toppings are selected. The price of the hamburgers is different based on the item added in its making.

Economics Concept Introduction

Perfect competition: In perfect competition type of market structure, the firms sell similar products and are the price takers as if any of the firm does not sell the similar product at the similar price then it may not stay longer in the market competition.