........ Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.ScenarioCompetitive?In a small town, there are two providers of broadband Internet access: a cable companyand the phone company. The Internet access offered by both providers is of the samespeed.In a major metropolitan area, one chain of coffee shops has gained a large market sharebecause customers feel its coffee tastes better than that of its competitors.The government has granted a patent to a pharmaceutical company for an experimentalAIDS drug. That company is the only firm permitted to sell the drug.Dozens of companies produce plain white socks. Consumers regard plain white socks asidentical and don't care who manufactures their socks. 10. Characteristics of competitive marketsThe model of competitive markets relies on these three core assumptions:1. There must be many buyers and sellers-a few players can't dominate the market.2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent.3. 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 for thisproblem that a 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.ScenarioCompetitive?In a small town, there are two providers of broadband Internet access: a cable companyand the phone company. The Internet access offered by both providers is of the samespeed.In a major metropolitan area, one chain of coffee shops has gained a large market sharebecause customers feel its coffee tastes better than that of its competitors.The government has granted a patent to a pharmaceutical company for an experimentalAIDS drug. That company is the only firm permitted to sell the drug.

is a market structure in which a large number of buyers and sellers trade homogeneous products at a…

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. In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than that of its competitors. 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. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks.

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. In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than that of its competitors. 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. Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Resource Market

Section: Chapter Questions

Problem 2.4P

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