Choose a market for a good in your area that seems to be a perfectly competitive market.
Answer the following questions:
Identify the buyers and sellers as well as the goods or services.
How closely do real world conditions match the characteristics listed in the model?
Are the sellers price takers?
Do they compete using price?
Is the good in question standardized?
Is this market regulated by government in any way?
Explain the competitive environment.
Choosing cow manure as an example of a perfectly competitive market:
1. The sellers are owners of cows, such as ranchers and dairy farmers. The buyers are growers of plants, such as vegetable farmers and recreational gardeners.
2. The model predicts that all cow manure will sell at ...
This solution gives an example of a perfectly competitive market and answers questions about its characteristics.
Characteristics and Examples of Perfect Competition
What are some of the characteristics of perfect competition? Which types of industries come closest to perfect competition in the real world?View Full Posting Details