Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 24, Problem 11E
To determine
(a)
Whether US stock market is an example of a
To determine
(b)
Whether automobile industry is an example of a perfectly competitive industry.
To determine
(c)
Whether consumer electronics market is an example of a perfectly competitive industry.
To determine
(d)
Whether market for college students is an example of a perfectly competitive industry.
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Students have asked these similar questions
William Shepherd’s research of U.S. industries showed a clear trend in the competitiveness of the U.S. economy between 1958 and 2000. Is the economy growing more or less competitive, and how did Shepherd explain this trend?
Productive efficiency and allocative efficiency are two concepts achieved in the long run in a perfectly competitive market. These are the two reasons why we call them “perfect.” How would you use these two concepts to analyze other market structures and label them “imperfect?”
An example of a perfectly competitive industry is
Select one:
a. the National Football League in Zimbabwe.
b. the market for French impressionists' paintings.
c. the market for corn in Botswana
d. Automotive industry
Knowledge Booster
Similar questions
- Consider the following production chain for bread. Assume that a Farmer grows wheat, and sells this to a Miller for $1.00. The Miller mills flour, and sells this to a Baker for $1.50. The Baker bakes bread, and sells this to a Supermarket for $3.00 per loaf. The Supermarket sells a loaf to a customer for $4.25. What is value added in the Miller's industry?arrow_forwardConsider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competition. 1. Coca-Cola and Pepsi2. Potatoes3. Private physicians in your local community4. Government bonds and corporate stocks5. Taxicabs in Lima, Peru—a city that does not restrict entry or the prices drivers can charge6. Oatsarrow_forwardExplain why economic profits in all perfectly competitive markets will tend toward zero in the long run. Is this a good thing or a bad thing for producers and consumers? Explain.arrow_forward
- of the following, what is the best example of a perfectly competitive market? Select the best answer.A large city with a high number of automatic car washesA region with railway services provided by three large companiesA village with one hair salonarrow_forwardSuppose a firm in a perfectly competitive industry develops a manufacturing innovation that lower its variable cost of production. What are the short run impacts of this innovation on both the firm and the industry? Please include a graph to illustrate the short run impacts. What are the long run impacts on both the firm and industry? Please include a graph to illustrate the long run impacts.arrow_forwardM/c question - Micro 29) What is a characteristic of a perfectly competitive market? A. Goods offered for sale are largely the same B. There are not many sellers in the market C. Firms have difficulty entering the market D. Firms are price setters 28) Refer to Table 14-2. At which quantity of output is marginal revenue equal to marginal cost? A. 8 B. 4 C. 6 D. 2arrow_forward
- If new technology in a perfectly competitive market brings about a substantial reduction in costs of production,how will this affect the market?arrow_forwardCompetitive Trends in the U.S. Economy) William Shepherd’s research of U.S. industries showed a clear trend in the competitiveness of the U.S. economy between 1958 and 2000. Is the economy growing more or less competitive, and how did Shepherd explain this trend?arrow_forwardA requirement for a perfectly competitive market is that the sellers sell identical products (consumers don't care who makes the products sold in that market). Think about this from the perspective of the seller. What are the benefits of this? What are the drawbacks?arrow_forward
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