Asked by Kaleb Shukeat on Jul 08, 2024
Verified
If a Florida strawberry wholesaler operates in a perfectly competitive market,that wholesaler will have a _____ share of the market,and consumers will consider her strawberries and her competitors' strawberries to be _____.Therefore,_____ advertising will take place in this market.
A) large;standardized;no
B) small;standardized;little or no
C) small;differentiated;no
D) large;differentiated;extensive
Perfectly Competitive
Perfectly Competitive refers to a theoretical market structure characterized by a complete lack of economic friction, infinite buyers and sellers, and a perfectly homogeneous product.
Standardized
Establishing uniform standards or norms for a process, product, or system to ensure consistency and comparability across different instances.
Advertising
The profession or act of creating promotional content for commercial goods or services.
- Appreciate the importance and implications of embodying a price taker versus a price maker role in a perfectly competitive setting.
- Expound on the concept of standardized goods in juxtaposition with differentiated goods in market systems.
- Acknowledge the absence of advertising rivalry and brand differentiation in perfectly competitive markets.
Verified Answer
JM
Jahni MooreJul 12, 2024
Final Answer :
B
Explanation :
In a perfectly competitive market, no individual wholesaler has a large share of the market, hence the answer choice A is incorrect. Also, in a perfectly competitive market, the products are standardized, meaning that they are identical or very similar, making answer choice D incorrect. As a result, the correct answer is B, where the wholesaler has a small share of the market and the strawberries are standardized. In such a market, there is little or no advertising as there is no need to promote the product since it is identical or very similar to its competitors.
Learning Objectives
- Appreciate the importance and implications of embodying a price taker versus a price maker role in a perfectly competitive setting.
- Expound on the concept of standardized goods in juxtaposition with differentiated goods in market systems.
- Acknowledge the absence of advertising rivalry and brand differentiation in perfectly competitive markets.