Vater Lilies, one of many flower farming companies, decides to grow an extra acre of tulips. Le Moulin Rouge is one of many cancan shoe makers, and they choose to increase the price of their shoes by $10. They do not understand why they can no longer sell any of their shoes. Persistence of Memory, one of a small handful of plastic providers, thinks it can change the market price by supplying more plastic from an influx of clocks it can melt. Haystacks is a pharmaceutical giant. Haystacks chooses to decrease the supply of its allergy medicines after conferring illegally with the other big producer in the market, Guernica. Starry Night, one of three companies that sells stars to the public, needs months for its board of directors to decide whether to auction more stars or not. La Grande Jatte is a lawn mowing service. Thanks to new lawn mowers, their employees are very efficient and consequently the company charges $2 less per mowed lawn. They are unable to keep up with all of the customers requesting their services. Mondrian House, one of only two construction firms operating in the region, decides not to change the price of its consultations.

Vater Lilies, one of many flower farming companies, decides to grow an extra acre of tulips. Le Moulin Rouge is one of many cancan shoe makers, and they choose to increase the price of their shoes by $10. They do not understand why they can no longer sell any of their shoes. Persistence of Memory, one of a small handful of plastic providers, thinks it can change the market price by supplying more plastic from an influx of clocks it can melt. Haystacks is a pharmaceutical giant. Haystacks chooses to decrease the supply of its allergy medicines after conferring illegally with the other big producer in the market, Guernica. Starry Night, one of three companies that sells stars to the public, needs months for its board of directors to decide whether to auction more stars or not. La Grande Jatte is a lawn mowing service. Thanks to new lawn mowers, their employees are very efficient and consequently the company charges $2 less per mowed lawn. They are unable to keep up with all of the customers requesting their services. Mondrian House, one of only two construction firms operating in the region, decides not to change the price of its consultations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Classify each scenario according to whether it represents a competitive market or an imperfect market.

Water Lilies, one of many flower farming companies, decides to grow an extra acre of tulips.
Le Moulin Rouge is one of many cancan shoe makers, and they choose to increase the price of their shoes by $10. They do not understand why they
can no longer sell any of their shoes.
Persistence of Memory, one of a small handful of plastic providers, thinks it can change the market price by supplying more plastic from an influx of
clocks it can melt.
Haystacks is a pharmaceutical giant. Haystacks chooses to decrease the supply of its allergy medicines after conferring illegally with the other big
producer in the market, Guernica.
Starry Night, one of three companies that sells stars to the public, needs months for its board of directors to decide whether to auction more stars
or not.
La Grande Jatte is a lawn mowing service. Thanks to new lawn mowers, their employees are very efficient and consequently the company charges $2
less per mowed lawn. They are unable to keep up with all of the customers requesting their services.
Mondrian House, one of only two construction firms operating in the region, decides not to change the price of its consultations.

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