Good Afternoon, Seeking assistance on assignment attached. Thank you


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Good Afternoon, Seeking assistance on assignment attached. Thank you 1 answer below » Good Afternoon, Seeking assistance on assignment attached. Thank you Document Preview: 1. Characteristics of competitive markets
The model of competitive markets relies on the following four core assumptions:
1.
There must be many buyers and sellers, none of which is large in relation to total sales or purchases. In other words, a few players can’t dominate the market.
2.
Each firm produces and sells a homogeneous product that is indistinguishable from all other firms’ products in a given View complete question » Good Afternoon, Seeking assistance on assignment attached. Thank you Document Preview: 1. Characteristics of competitive markets
The model of competitive markets relies on the following four core assumptions:
1.
There must be many buyers and sellers, none of which is large in relation to total sales or purchases. In other words, a few players can’t dominate the market.
2.
Each firm produces and sells a homogeneous product that is indistinguishable from all other firms’ products in a given industry. That is, buyers must regard all sellers’ products as equivalent, or identical.
3.
Buyers and sellers have all relevant information about prices, product quality, sources of supply, etc.
4.
Firms have free entry into and exit from the industry. New firms can enter the market easily, and existing firms can exit the market easily. There are no barriers to entry or exit.
The first three assumptions imply that all consumers and firms are price takers. The final assumption is not necessary for price-taking behavior, but guarantees that a market remains competitive in the long run.
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?
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. ______
a. No, no entry fee
b. No, not many sellers
c. No, not a homogenous product
 d.Yes meets all assumptions
Scholastik Inc. owns the U.S. copyright to a popular book series. It is the only company with the legal right to publish books in the series in the United States. ______
 
Dozens of companies produce plain white socks. Consumers regard plain white socks as homogeneous and don’t care who manufactures their socks. _______
 
Several stores in the mall sell hooded sweatshirts. Each store’s sweatshirts reflect the style of that particular store. Additionally, some stores use higher-quality cotton than others, which is… Attachments: Assignment-du….docx View less » Feb 04 2016 10:18 PM

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