The necessary conditions for a perfectly competitive market.

Question

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Answer 1

Question

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

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Answer 2

Question

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

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Answer 3

Question

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

Answer 6

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.

Economics Concept Introduction

Perfect competition: Perfect competition is a market structure in which large number of sellers offers a homogeneous product.

Answer 7

Chapter 9, Problem 1QR

To determine

The necessary conditions for a perfectly competitive market.

Answer 8

Expert Solution & Answer

Explanation of Solution

Perfect competition is a market structure in which large number of sellers sells a homogeneous product. The important characteristics of a perfectly competitive market include large number of buyers and sellers, identical products, unitary price, freedom of entry and exit, absence of transportation cost, and perfect knowledge about the market. These are the necessary conditions for the existence of a perfectly competitive market. Identical products and large number of sellers make perfect substitute for the goods in the market, this will drive price down to the same level.