Recall the Application. What makes the wireless telephone market in the United States not perfectly competitive? There are many buyers and many sellers in the United States It is very expensive to enter the market in the United States. Wireless phone calls are a standardized product. All of the above are correct.
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Step 1: A perfectly competitive market has many buyers and sellers, low barriers to entry, and homogenous products. Show more…
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3. What makes the wireless telephone market in the United States NOT perfectly competitive? A. There are many buyers and many sellers in the United States. B. It is very expensive to enter the market in the United States. C. Wireless phone calls are a standardized product. D. All of the above are correct.
Andrew D.
Perfect Competition: (Chapter 24) This assignment is associated with the learning outcome relative to how entry costs affect the number of firms in a market. Go to chapter 24 in your textbook and read Application 1 Wireless Women in Pakistan. Answer all of the following questions. 1. Which of the following is NOT a characteristic of a perfectly competitive market? A) a large number of firms in a market B) selling a standardized product C) substantial barriers to entry D) an individual firm having no control over price 2. The Firm
The model of competitive markets relies on these three core assumptions: There must be many buyers and sellers - a few players can't dominate the market. Firms must produce an identical product - buyers must regard all sellers' products as equivalent. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume a problem that the market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not: Scenario Competitive? Explanation Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks. Yes - meets all assumptions The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm permitted to sell the drug. No - not many sellers, not an identical product Several stores in the mall sell hooded sweatshirts. Each store's sweatshirts reflect the style of that particular store. Additionally, some makers use higher-quality cotton than others, which is reflected in the apparel's prices. Yes - meets all assumptions In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same speed. Yes - meets all assumptions
Manasvee S.
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