Asked by Molly Flynn on May 07, 2024
Verified
The textbook for your class was not produced in a perfectly competitive industry because:
A) there are so few firms in the industry that market shares are not small, and firms' decisions have an impact on market price.
B) upper-division microeconomics texts are not all alike.
C) it is not costless to enter or exit the textbook industry.
D) of all of the above reasons.
Perfectly Competitive Industry
A market structure where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.
Market Shares
The percentage of an industry's total sales that is earned by a particular company over a specified time period.
Market Price
The current price at which an asset or service can be bought or sold in the marketplace.
- Understand the characteristics and assumptions of perfectly competitive markets.
- Identify and explain the differences between various market structures, including monopolies and cooperatives.
Verified Answer
KP
Kaitie PerinMay 12, 2024
Final Answer :
D
Explanation :
The textbook industry does not satisfy the conditions of perfect competition due to a few firms having a large market share and the ability to affect market price. Additionally, there are differences between textbooks, indicating product differentiation. Lastly, there are barriers to entry and exit in the industry, such as high development and production costs, as well as the need for marketing and distribution channels.
Learning Objectives
- Understand the characteristics and assumptions of perfectly competitive markets.
- Identify and explain the differences between various market structures, including monopolies and cooperatives.