Whether the given market is competitive or not.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The demand function for organic apples is given by Qd = 20 – 2P while the supply function is given by Qs = 4P – 10.a. Solve for the equilibrium P* and Q*.b. Carefully graph the D & S curves. Include all intercepts and P* and Q* (**enlarge your graph so you can better show the questions below use graphing paper**)i. Suppose that the government legislates a $1/gallon to be collected from the buyer. Identify the new equation for the demand curve. Plot the new demand curve (on the same graph as b).ii. Solve for the new equilibrium PT* and QT* and indicate on your graph. On the same graph, indicate the P that consumers pay (PC) and the P that producers get to keep (PS).c. On another graph with the original D and S curves, impose the same tax ($1/gallon) to sellers. Identify the new equation for the supply curve. Plot the new supply curve. i. Solve for the new equilibrium PT* and QT* and indicate on your graph. On thesame graph, indicate the P that consumers pay (PC) and the P that…

Don't use ai to answer I will report you answer

Explain and evaluate the impact of legislation on the U.S. criminal justice system, specifically on the prison population and its impact on poverty and the U.S. economy. Include significant elements and limitations such as the War on Drugs and the First Step Act.

Answer 2

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 6

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 7

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Answer 8

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 12

Ch. 6 - Prob. 1Q Ch. 6 - Prob. 2Q Ch. 6 - Prob. 3Q Ch. 6 - Use a graph to show the relationship between the...Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Whether the given market is competitive or not.

Whether the given market is competitive or not.

Explanation of Solution

Want to see more full solutions like this?

Chapter 6 Solutions