Three conditions for a market to be perfectively competitive.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Want to see more full solutions like this?

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

Students have asked these similar questions

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows. Rental Class Super Saver Deluxe Business Room Type I Type II $30 $35 $20 $30 $40 Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 50 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 100 Type I rooms and 120 Type II rooms. (a) Formulate and solve a linear program to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. (Assume S₁ is the number of Super Saver rentals allocated to room type I, S₂ is the number of Super Saver…

Don't used hand raiting

What is the impact of population and demographic trends on our society? How does this continuation of growth impact our project supplies of goods and services? Be specific in your response.

Answer 2

Question

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Want to see more full solutions like this?

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

Answer 3

Question

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Want to see more full solutions like this?

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

Answer 4

Question

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Want to see more full solutions like this?

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

Answer 5

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Answer 6

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Answer 7

Chapter 12, Problem 12.1.1RQ

To determine

Three conditions for a market to be perfectively competitive.

Answer 8

Expert Solution & Answer

Explanation of Solution

The market is a structure where there are large number of buyers and sellers who sell and buy goods and services between themselves. The market competition is the market structure where there is competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers. There are three conditions that must be satisfied in order to become the market competitive. They are as follows:

1. There must be a large number of sellers and buyers in the market: The market will have a large number of producers producing the commodities in order to satisfy the needs of the large number of consumers.
2. The commodities in the market will be identical: There will be a large number of buyers and sellers in the market who compete with each other to satisfy the needs of the consumers. Thus, in order to have competition among the sellers, the commodities must be identical to each other.
3. There must be no barriers to entry and exit: The market will be open to all and there will be no barriers for the entry of new firm into the market as well as the exit of the existing firm from the market. When there is profit, new firms will enter and when there is loss, existing firms will shut down their production and exit the market.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept introduction:

Market competition: A competitive market is one in which there is a large number of producers who compete with each other to satisfy the needs of the large number of consumers.

Answer 12

Ch. 12 - Prob. 12.1.1RQ Ch. 12 - Prob. 12.1.2RQ Ch. 12 - Prob. 12.1.3RQ Ch. 12 - Prob. 12.1.4PA Ch. 12 - Prob. 12.1.5PA Ch. 12 - Prob. 12.1.6PA Ch. 12 - Prob. 12.1.7PA Ch. 12 - Prob. 12.1.8PA Ch. 12 - Prob. 12.2.1RQ Ch. 12 - Prob. 12.2.2RQ

Three conditions for a market to be perfectively competitive.

Three conditions for a market to be perfectively competitive.

Explanation of Solution

Want to see more full solutions like this?

Chapter 12 Solutions