Looking around your city, what businesses do you think come closest to the model of a perfectly competitive market? Explain why this is the case using correct economic terms and concepts.

A perfectly competitive market is made up of:Response option group a) Many individuals and companies trading a homogeneous good so they do not affect its price. b) Individuals and companies trading many goods and services. c) Companies organized in a poster. d) Peasants selling fruits and vegetables in the market. e) Companies selling many different products.

Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?

Which of the following products/markets is most consistent with the perfect competition model?     Apple iPhones     a bustling farmers' market     Kellogg's Frosted Flakes     electric utilities     automobiles   2 Adam Smith’s “invisible hand” refers to         The mechanism that moves market price and quantity to equilibrium     The natural tendency of markets to avoid monopolies and ensure competition       The market’s incentive to lower price in order to increase quantity sold         The lack of government role in the free market due to the market’s ability to self-regulate         The tendency of firm’s to seek to merge in order to realize synergies and market dominance 3 A company facing inelastic demand for a product sees an increase in its costs after a worker strike forces a wage increase. What is likely to happen to the price and quantity sold of that product?       Price will fall slightly while…