Important differences between the perfect competition and monopolistic competition with two examples for each market.
Explanation of Solution
The market is a structure where there are buyers and sellers who sell and buy the goods and services between the buyers and sellers. The market competition is the market structure where there is a competition among the large number of sellers in the market in order to satisfy the needs of the large number of consumers.
The perfect competition and the monopolistic competition are two market structures where there are large number of buyers and sellers in the market. The products selling in the perfect competition are identical products which make the competition and make the firm the
There are no barriers to entry of new firms into the market under the perfect competition, whereas there are some barriers to the entry of new firms into the market under the monopolistic competition.
The best example for the perfect competition is the wheat and many other raw materials sold in the market. The haircuts and the restaurant meals are the best examples for the monopolistic competition in the economy.
Concept introduction:
Perfect competition: Perfect competition is the market structure where there are large number of buyers and sellers in the market selling the identical products at the market determined price level. Thus, the firms in the perfect competition will be the price takers.
Monopolistic competition: The monopolistic competition is a market condition where there will be a large number of sellers selling differentiated products.
Want to see more full solutions like this?
Chapter 13 Solutions
Economics (7th Edition) (What's New in Economics)
- Please review "Alaska Ranked Coice Voting Implementation" for information to answer question, What is Ranked Choice Voting?arrow_forwardConsider the following demand and supply functions:Qd= 10-PQs=1+2pFind the equilibrium price and quantity, Producers and Consumer surpluses.Consider the tax size 3. What would be new CS and PS, TS and DL? (hint – it would be easierif you draw them)arrow_forwardWHAT IS IS-LM-PCarrow_forward
- not use ai pleasearrow_forwardNot use ai pleasearrow_forwardActive Learning 4: Computing GDP Cookies 2021 (base year) 2022 2023 P Q P Q P Q $1 900 $2 1,000 $3 1,250 200 $1,200 210 Smartphones $900 185 $1,000 Use the above data to solve these problems: A. Compute nominal GDP in 2021. B. Compute real GDP in 2022. C. Compute the GDP deflator in 2023. Mankiw, Principles of Macroeconomics, 10th Edition. 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 34 =4arrow_forward
- check if my answers are right for the questions and draw the graphs for me pleasearrow_forwardcheck my answers and draw the graph for me.arrow_forwardThe first question, the drop down options are: the US, Canada, and Mexico The second question, the drop down options are: the US, Canada, and Mexico The last two questions are explained in the photo.arrow_forward
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
