Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 11R, Problem 1CTQ
To determine
The markets in local economy that closely relates to the Adam Smith’s deal
Expert Solution & Answer
Explanation of Solution
.The firm that follows perfect competition type market structure must possess following traits:
- Exactly similar products are sold in the market.
- They are price takers as they sell identical products.
- Consumers possess all information about the product, price and the quality that is offered by the firm.
- Firm can easily enter the market and exit is easy in these firms.
- Market share of these firms has low or negligible significance.
Following markets in local economy are similar to ideal perfect competition:
- Seller that sells vegetables, eggs, etc. These products are similar and are usually sold at similar prices.
- Secondly, gas stations at which fuel are sold at same price to all customers.
Economics Concept Introduction
Perfect competition: In perfect competition type of market structure, the firms sell similar products and are the price takers as if any of the firm does not sell the similar product at the similar price then it may not stay longer in the market competition.
Chapter 11R Solutions
Krugman's Economics For The Ap® Course
Ch. 11R - Prob. 1MCQCh. 11R - Prob. 2MCQCh. 11R - Prob. 3MCQCh. 11R - Prob. 4MCQCh. 11R - Prob. 5MCQCh. 11R - Prob. 6MCQCh. 11R - Prob. 7MCQCh. 11R - Prob. 8MCQCh. 11R - Prob. 9MCQCh. 11R - Prob. 10MCQ
Ch. 11R - Prob. 11MCQCh. 11R - Prob. 12MCQCh. 11R - Prob. 13MCQCh. 11R - Prob. 14MCQCh. 11R - Prob. 15MCQCh. 11R - Prob. 16MCQCh. 11R - Prob. 17MCQCh. 11R - Prob. 18MCQCh. 11R - Prob. 19MCQCh. 11R - Prob. 20MCQCh. 11R - Prob. 21MCQCh. 11R - Prob. 22MCQCh. 11R - Prob. 23MCQCh. 11R - Prob. 24MCQCh. 11R - Prob. 25MCQCh. 11R - Prob. 1FRQCh. 11R - Prob. 2FRQCh. 11R - Prob. 3FRQCh. 11R - Prob. 1CTQCh. 11R - Prob. 2CTQCh. 11R - Prob. 3CTQ
Knowledge Booster
Similar questions
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group s elasticity of demand is while group s is Your marginal cost of producing the product is $ a Determine your optimal markups and prices under thirddegree price discrimination. b Identify the conditions under which thirddegree price discrimination enhances profits.arrow_forwardDon't used hand raiting and don't used Ai solutionarrow_forwardDemand and supply functionarrow_forward
- Not use ai pleasearrow_forwardThanks!arrow_forwardIf there is an oil shock, what will happen to the market for thick metal tables (they are very heavy)? Group of answer choices P decreases and Q increases. P decreases and Q decreases. P increases and Q decreases. P increases and Q increases.arrow_forward
- Facebook (not Mark Zuckerberg) would do which of the following actions according the Circular Flow diagram? Group of answer choices Buys, but does not sell. Sell and Buy (or Rent). Does not sell nor buys. Sell, but does not buy.arrow_forwardFirms would do which of the following actions according the Circular Flow diagram? Group of answer choices Sell, but does not buy. Sell and Buy (or Rent). Buys, but does not sell. Does not sell nor buys.arrow_forwardWhen the price of a good or a service increases, _______? Group of answer choices The demand curve shifts in the same direction. The supply curve shifts in the opposite direction. The demand curve shifts in the opposite direction. There is a movement along the demand curve.arrow_forward
- A foreign country to which we export but from which we do not import would do ______ according the Circular Flow Diagram? Group of answer choices Sell and Buy (or Rent). Sell, but does not buy. Buys, but does not sell. Does not sell nor buys.arrow_forwardNot use ai pleasearrow_forwardAfter the holiday season, many of us find ourselves thinking, “What will I do with another case for my iPad?” Often, both the gift giver and gift receiver could be made better off (that is, receive a higher level of utility or happiness) if cash had been given instead. To understand the economic rationale behind this, economists turn to the basic consumer theory model of budget constraints and indifference curves. Recall that an indifference curve maps out all possible consumption bundles of goods that yield the same level of utility to a given consumer. Indifference curves tell us nothing about what we can afford, but rather tell us how happy a particular bundle will make us. On the other hand, a budget constraint shows the consumption bundles that we can buy given our income and the prices of goods. Similarly, a budget constraint says nothing about what we would like to buy, but rather what we can afford. Suppose you consume only two types of goods: magazines and food. You have $300…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education