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August 27, 2020

Discussion question

Choose a market for a good in your area that seems to be a perfectly competitive market. Perfect competition is useful in analyzing real-world markets, even though there are very few, if any, that match the characteristics of the perfect competition model. Answer the following questions to describe the market, and describe how competitive the market you have chosen is:

What good or service is provided in this market?
Who are the buyers and who are the sellers in the market?
Are there many sellers in the market?
Are there very many substitutes for the good or service?
If the store where you usually buy this item raised its prices, would you go to another store or switch products? Explain.
Do you think that this a competitive market? Explain.

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