Exploring Microeconomics
8th Edition
ISBN: 9781544339443
Author: Sexton, Robert L.
Publisher: Sage Publications, Inc., Corwin, Cq Press,
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Question
Chapter 14, Problem 1P
To determine
(a)
To find:
Whether soy market is a
Expert Solution
Answer to Problem 1P
The soy market is a perfectly competitive market.
Explanation of Solution
Soy market is a perfectly competitive market because there are large number of buyers and sellers, and the firms sells homogeneous product in the soy market.
Economics Concept Introduction
Monopolistic market refers to the market structure in which there are many firms which sell closely related but differentiated commodities.
Perfectly competitive market:
Perfectly competitive market refers to the market structure in which there are many buyers and sellers. The sellers sell homogeneous commodities in this market structure and there is free entry and exit of firms.
To determine
(b)
To find:
Whether retail clothing is a perfectly competitive market.
Expert Solution
Answer to Problem 1P
The retail clothing is a monopolistically competitive market.
Explanation of Solution
Retail clothing is a monopolistically competitive market because there are many firms in this market which deal with closely related but differentiated commodities. For example, shirts can be different in color, size, and quality but all are closely related. So, retail clothing is a monopolistically competitive market.
Economics Concept Introduction
Monopolistically competitive market:
Monopolistic market refers to the market structure in which there are many firms which sell closely related but differentiated commodities.
Perfectly competitive market:
Perfectly competitive market refers to the market structure in which there are many buyers and sellers. The sellers sell homogeneous commodities in this market structure and there is free entry and exit of firms.
To determine
(c)
To find:
Whether S restaurant in B Hills is a competitive market.
Expert Solution
Answer to Problem 1P
The S restaurant in B Hills is a monopolistically competitive market.
Explanation of Solution
The S restaurant in B Hills is a monopolistically competitive market because there can be many other restaurants in B Hills but not in large number. Since the restaurant deals with closely related but differentiated products. So, this market is termed as monopolistically competitive market.
Economics Concept Introduction
Monopolistically competitive market:
Monopolistic market refers to the market structure in which there are many firms which sell closely related but differentiated commodities.
Perfectly competitive market:
Perfectly competitive market refers to the market structure in which there are many buyers and sellers. The sellers sell homogeneous commodities in this market structure and there is free entry and exit of firms.
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Chapter 14 Solutions
Exploring Microeconomics
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