(a)
The type of market for Wheat belongs is to be determined.
Answer to Problem 1SPPA
Explanation of Solution
The wheat belongs to perfectly competitive market because it is a homogenous commodity and each producers of wheat share small portion of market share.
Perfect Competition:
Perfect competition is a market condition where a very large number of buyer and sellers exists, and the seller sells the homogenous commodities with perfect knowledge.
(b)
The type of market for jeans belongs is to be determined.
Answer to Problem 1SPPA
Explanation of Solution
Jeans belongs to monopolistically competitive market. There are a large number of sellers exists in this market and each firm has some control over the price of jeans. So, jeans belong to monopolistically competitive market.
Monopolistically competitive market:
Monopolistic market refers to the market structure in which there are many firms which sell closely related but differentiated commodities.
(c)
The type of market for printer cartridges belongs is to be determined.
Answer to Problem 1SPPA
Oligopoly market.
Explanation of Solution
Printer cartridge belongs oligopoly market. Since it contains the characteristic − few firms participate for most or all of total production and these firms enjoys all market share and profits.
Oligopoly Market:
The oligopoly market refers to the situation where only a few firms participate for most or all of total production. In this market, these few firms earn a substantial profit in the long run because the barrier to entry makes it very difficult to enter new firms in the market.
(d)
The type of market for toothpaste belongs is to be determined.
Answer to Problem 1SPPA
Oligopoly market.
Explanation of Solution
The toothpaste contains the characteristics of oligopoly market. There are few sellers and manufacturer for toothpaste and these firms enjoys whole profit and market share. So, it belongs to oligopoly market.
Oligopoly Market:
The oligopoly market refers to the situation where only a few firms participate for most or all of total production. In this market, these few firms earn a substantial profit in the long run because the barrier to entry makes it very difficult to enter new firms in the market.
(e)
The type of market for gym membership in a town with one gym belongs is to be determined.
Answer to Problem 1SPPA
Explanation of Solution
Gym membership in a town with one gym belongs to a monopoly market. Since there is only one gym in a town, with no substitute and the owner has complete control over its price.
Monopoly Market:
Monopoly market refers to the market situation where a single firm enjoys the largest market share by selling the commodity which has no close substitute and the entry for new firms in the monopoly market is very difficult.
Want to see more full solutions like this?
Chapter 15 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
- Thanks!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_forwardFacebook (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_forward
- Firms 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_forwardA 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_forward
- Not 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_forwardCho is a truck driver living in Miami who performs freelance health consulting to supplement her normal income. At an hourly wage rate of $45, she is willing to consult 5 hours per week. Upping the wage to $65 per hour, she is willing to consult 14 hours per week. Using the midpoint method, the elasticity of Cho’s labor supply between the wages of $45 and $65 per hour is approximately , which means that Cho’s supply of labor over this wage range is .arrow_forward
- Where do I draw the demand and supply linearrow_forwardIt would be inefficient but possible for this economy to produce? 100 1dryers 90 80 C 70 A 60 50 D B 40 30 20 10 10 20 30 40 50 60 70 80 washers O 90 dryers and 20 washers. 50 dryers and 50 washers. O Two of the answers are correct. O 60 dryers and 20 washers.arrow_forwardignore what i put and find the correct answerarrow_forward
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Survey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning