Question

Choose the correct statements about competitive markets. 1. All competitive markets are physical places where buyers and sellers meet. 2. A competitive market has many sellers. 3. A competitive market has many buyers. 4. In a competitive market, prices are eventually driven down to zero. A. Statements 1 and 2 are correct. B. Statements 2 and 3 are correct. C. Statements 1 and 4 are correct. D. Statements 3 and 4 are correct. 

          Choose the correct statements about competitive markets.
1. All competitive markets are physical places where buyers and sellers meet.
2. A competitive market has many sellers.
3. A competitive market has many buyers.
4. In a competitive market, prices are eventually driven down to zero.
A. Statements 1 and 2 are correct.
B. Statements 2 and 3 are correct.
C. Statements 1 and 4 are correct.
D. Statements 3 and 4 are correct.
Show more…
Choose the correct statements about competitive markets. 1. All competitive markets are physical places where buyers and sellers meet. 2. A competitive market has many sellers. 3. A competitive market has many buyers. 4. In a competitive market, prices are eventually driven down to zero. A. Statements 1 and 2 are correct. B. Statements 2 and 3 are correct. C. Statements 1 and 4 are correct. D. Statements 3 and 4 are correct.

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Choose the correct statements about competitive markets. 1. All competitive markets are physical places where buyers and sellers meet. 2. A competitive market has many sellers. 3. A competitive market has many buyers. 4. In a competitive market, prices are eventually driven down to zero. A. Statements 1 and 2 are correct. B. Statements 2 and 3 are correct. C. Statements 1 and 4 are correct. D. Statements 3 and 4 are correct.
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Transcript

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00:01 Hello, let's identify whether or not each of the following scenarios describes a competitive market and i will also explain why or why not.
00:14 Let's start with the first scenario and as we can see to this scenario, it's not a competitive market, so answer is no and why.
00:29 It's given that there are only few major airlines.
00:33 Few, not many.
00:36 For this reason, this is not the competitive market.
00:41 So our answer is no, because there are not many sellers.
00:51 Okay, now the second.
00:53 And again, it's not the competitive market, but now for another reason.
01:00 As we can see, the colleges vary by location, size and educational quality, so there is no identical product.
01:14 So it's not, and explanation is, not an identical product.
01:25 Not identical product.
01:28 That's why it's not the competitive market.
01:33 Okay, the third...
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