00:02
So for this problem, we have five different items, and we want to know are they perfectly competitive, monopolistic, or monopolistically competitive? so first up, we have wooden number two pencils.
00:16
So we have lots of sellers, free entry and exit.
00:20
There's really no differentiation between brands.
00:23
So we're going to label this one as perfectly competitive, which we'll just abbreviate pc.
00:31
Copper, again, there's no real differentiation between copper from one manufacturer or another.
00:37
There's free entry and exit.
00:39
There are a lot of different manufacturers of it.
00:42
So again, we can call this one perfectly competitive.
00:46
Now, how about local electric service? well, right away, we have an issue with saying that's perfectly competitive because typically there's only one local electric service.
00:57
So because there's only one, we know it can't be.
01:00
Perfectly competitive...