Monopoly and Market Power( Competitive Market)
Part B: What makes a aggressive market?
In the area advantaged Low Barriers to Entry, this affiliate lists six characteristics for a aggressive bazaar that can advice an abridgement accomplish the virtues of competition. The six characteristics are:
a) Many firms
b) Identical products
c) MC = p
d) Low barriers to entry
e) Zero bread-and-butter profit
f) Perfect information
However, these these characteristics don’t consistently occur. Aces a bazaar for a acceptable or account with which you are accustomed (for example, academy textbooks or car insurance—but don’t use these examples). Be abiding you baddest a acceptable or account produced by firms operating to accomplish a profit. Don’t aces article produced by the government or a non-profit firm.
1) In the bazaar you selected, which characteristics are present?
2) Which characteristics are absent?
3)Pick one of the absent characteristics. Provide affirmation to abutment your acumen that it is missing.
4) For one of the absent characteristics you articular in (2), call a government action to antidote the shortcoming, so that added of the virtues of antagonism could be achieved. Explain why assembly would be added able and why there would be a added optimal mix of output.
Order a unique copy of this paper