MICROECONIMICS
5th Edition
ISBN: 9781319372101
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter 3, Problem aWYWL
To determine
What is a competitive market?
Concept Introduction:
Competitive market: The competitive market is a market where there is a large number of buyers and sellers in the sellers are profit motive and the buyers want to maximize their satisfaction. In a competitive market, no single product can influence the
Expert Solution & Answer
Explanation of Solution
A competitive market is a place where there is a large number of buyers and sellers in the economy. And there are selling almost the homogenous products in the economy, the sellers are profit motive and the buyers want maximum satisfaction from the products. There is a rivalry in the competitive market the actions of one firm affect the decision of another firm so it leads to rivalry in the markets. Another feature of the competitive market is excludability the firms may exclude the consumers from enjoying their good or service for an example the movies are only shown to the persons who buy the movie ticket if there is no excludability the consumers become the free riders. Another feature of the competitive market is the available information is fully reflected in the market, for example, there is a report that hamburger consumption creates more health problems to the people, so due to this report, there will be decreased
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Chapter 3 Solutions
MICROECONIMICS
Ch. 3 - Prob. aWYWLCh. 3 - Prob. bWYWLCh. 3 - Prob. cWYWLCh. 3 - Prob. dWYWLCh. 3 - Prob. 1QFTCh. 3 - Prob. 2QFTCh. 3 - Prob. 3QFTCh. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - Prob. 3P
Ch. 3 - Prob. 4PCh. 3 - Prob. 5PCh. 3 - Prob. 6PCh. 3 - Prob. 7PCh. 3 - Prob. 8PCh. 3 - Prob. 9PCh. 3 - Prob. 10PCh. 3 - Prob. 11PCh. 3 - Prob. 12PCh. 3 - Prob. 13PCh. 3 - Prob. 14PCh. 3 - Prob. 15PCh. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18PCh. 3 - Prob. 19PCh. 3 - Prob. 20PCh. 3 - Prob. 21P
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