I am requesting your assistance with only 3 questions in Economics. It is dealing with Competitive Markets. I have attached the reading material as well as the assignment. Your assistance is needed by Sunday, 03/20/16 at 4:25 p.m. (CST). If you are unable to assist me, please let me know. Thanks.© BrainMass Inc. brainmass.com October 10, 2019, 8:19 am ad1c9bdddf
1. One market that is close to being perfectly competitive is the market for foreign exchange. 1) The foreign exchange market is a global market that operates round the clock, and round the year. It has the largest number of buyers and sellers. 2) The products (currencies) are homogenous). For example one cannot say that one pound sterling is different from another pound sterling. 3) There is easy market entry & exit. Through a broker anyone can buy or sell currency. Brokers allow customers to open an account for as low as $50 and some even allow accounts for just $1.
A perfect market is one in which all firms sell or buy an identical products, all firms are price takers or they cannot control market price, all firms have a small market share, buyers have full information about the product being sold and the prices being charged, and there is freedom of entry and exit. The foreign exchange market is close to being perfectly competitive. The problem in calling the foreign exchange market as perfectly competitive is that the transactions of large financial institutions may influence the market price. In the foreign exchange market all institutions have a relatively small market share, and buyers/sellers of currency have access to full information about the currency ...
The answer to this problem explains the industry regulated by Tennessee Regulatory Authority . The references related to the answer are also included.