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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Responsd to Luis Rodriguez
1800 tons of pomegranates a year is a lot of sweetness!
So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan for only $1? How do you know that your purchasing power in Afghanistan is stronger than in the United States?
Yes, with an exchange rate of 71 Afghan Afghani for 1 US dollar, you can buy many things in Afghanistan for just $1. However, purchasing power isn't solely determined by the exchange rate. It also depends on the cost of goods and services in each country. For example, if a meal in Afghanistan costs 200 Afghanis, you would need about $2.82 to buy that meal in US dollars (since 200 Afghanis divided by 71 Afghanis per dollar equals approximately $2.82). So, while the exchange rate allows you to get more Afghanis for your dollars, you also need to consider how much things cost in Afghanistan.
Now that the world seems to like Afghani stuff and is buying more of it, does that mean your…
The idea that a country can experience gains from trade means that it can
A) consume at a point outside its production possibilities frontier.
B) increase its exports.
C) increase the efficiency of its production.
D) experience a bowed-out production possibilities frontier.
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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