Options for number of firms is few, many and one. A large city has lots of small shops where people can buysweaters. Each store's sweaters reflect the style of that particularstore. Additionally, some stores use higher-quality yarn thanothers, which is reflected in their price.Dozens of companies produce plain white socks. Consumersregard plain white socks as identical and don't care about whosells them their socks. The technology for producing socks iswidely known, and any reputable person who wanted to start asock manufacturing business could obtain a loan from a bank tobuy the necessary machinery.In a small town, there are four providers of broadband Internetaccess: a cable company, the phone company, and two satellitecompanies. The Internet access offered by all four providers is ofthe same speed. Almost everyone in the city already hasbroadband, so any potential new company would have to engagein a price war with the existing companies and would be unlikelyto cover its costs for years, if ever.The government has granted a patent to a drug company for anexperimental AIDS drug. That company is the only firm permittedto sell the drug.YPerfect CompetitionOligopolyMonopolistic CompetitionMonopoly ScenarioA large city has lots of small shops where people can buysweaters. Each store's sweaters reflect the style of that particularstore. Additionally, some stores use higher-quality yarn thanothers, which is reflected in their price.Dozens of companies produce plain white socks. Consumersregard plain white socks as identical and don't care about whosells them their socks. The technology for producing socks iswidely known, and any reputable person who wanted to start asock manufacturing business could obtain a loan from a bank tobuy the necessary machinery.In a small town, there are four providers of broadband Internetaccess: a cable company, the phone company, and two satellitecompanies. The Internet access offered by all four providers is ofthe same speed. Almost everyone in the city already hasbroadband, so any potential new company would have to engage.in a price war with the existing companies and would be unlikelyNumber ofFirmsType of ProductDifferentiatedUniqueIdenticalMarket Model

Perfect competition is a market where there are an enormous number of firms, each selling…

city has lots of small shops where people can buy sweaters. Each store's sweaters reflect the style of that particular store. Additionally, some stores use higher-quality yarn than others, which is reflected in their price. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care about who sells them their socks. The technology for producing socks is widely known, and any reputable person who wanted to start a sock manufacturing business could obtain a loan from a bank to buy the necessary machinery.

city has lots of small shops where people can buy sweaters. Each store's sweaters reflect the style of that particular store. Additionally, some stores use higher-quality yarn than others, which is reflected in their price. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care about who sells them their socks. The technology for producing socks is widely known, and any reputable person who wanted to start a sock manufacturing business could obtain a loan from a bank to buy the necessary machinery.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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