Question

Are the following markets perfectly competitive? Explain answers.

a) Potato farmers selling in a local market.

b) Nancy Ajram, the famous Lebanese singer, concerts.

c) SUVS [Sport Utility Vehicle].

Answer 1

As we know that,prefect competition is market structure in which there are large number of buyers are sellers selling and buying a homogeneous product. The number of buyers and sellers are so large that one one is able to influence the market price.there is free entry and exit of firm's in perfect competition.allthe buyers and sellers are Price takers.the firm's are making normal profits in perfect competition.   

A :. We know that agriculture products like patato buying and selling falls under perfect competition.large nombers buyers are sellers gather to sell and purchase patato.no one is able to influence the price of patato.

B C:.part b is type of monopoly in which the singer could charge the price what ever he likes .he is the maker of price the singer may charge different price from different viewes.

C:SUV supports utility vichles are the type of monopolistic competition in which the firm's sell highly differentiated products

Hope you got the answer