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Chapter 23ANSWERS TO ENDOFCHAPTER QUESTIONS 231Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications.

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Answer: In a perfect competition, the number of firms is large, products are homogeneous, factors are mobile, and everyone has the liberty to enter and exit the market. Also, monopolistic combinations are not possible.

The three primary characteristics of perfect competition are (1) no company holds a substantial market share, (2) the industry output is standardized, and (3) there is freedom of entry and exit. The efficient market equilibrium in a perfect competition is where marginal revenue equals marginal cost.

The best examples of a purely competitive market are agricultural products, such as corn, wheat, and soybeans. Monopolistic competition is much like pure competition in that there are many suppliers and the barriers to entry are low.

large number of firms supplying the product. standardized or homogeneous products. low entry and exit costs for firms entering or leaving the industry, and. for any market for which the above qualities are true, then suppliers are price takers in that no individual supplier has any influence on the market price.

Following are the characteristics of perfect competition: Large numbers of buyers and sellers in the market. Free entry and exit of firms in the market. Each firm should be selling a homogeneous product. Buyers and sellers should possess complete knowledge of the market. No price control.

PERFECT COMPETITION, CHARACTERISTICS: The four key characteristics of perfect competition are: (1) a large number of small firms, (2) identical products sold by all firms, (3) perfect resource mobility or the freedom of entry into and exit out of the industry, and (4) perfect knowledge of prices and technology.

Pure competition: very large number of firms; standardized products; no control over price: price takers; no obstacles to entry; no nonprice competition.

Match Many buyers and many sellers. Standardized goods. Prices are free to move. no price ceilings, no price floors. firms cannot change market price, only adjust to it. ... Perfect information (information about product quality, availability) Firms can freely enter and existing firms can freely leave.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232