The model of competitive markets relies on these three core assumptions: ere mus

Question

The model of competitive markets relies on these three core assumptions: ere must be many buyers and sellers-a few players can't dominate the market. 2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.

Explanation / Answer

A few major airline accounts for......... - no not many sellers.

There are hundreds of colleges............ - no not an identical product.

Dozens of companies produce plain as white stocks - yes meets all assumptions.

The government has granted a Patent...... - no, no free entry

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