ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Most helpful in determining the market structure of a specific market
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Most harmful in determing the market structure of a specific market
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Most helpful in determing which specific market has a possible monopoly already in place
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Most helpful in determinig which market has the most tax rates
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Detailed explanation-1: -Perfect Competition They sell similar products (homogeneous), lack price influence over the commodities, and are free to enter or exit the market.
Detailed explanation-2: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
Detailed explanation-3: -The number and relative size of firms supplying the product. The degree of product differentiation. Pricing power of the sellers. The relative strength of the barriers to market entry and exit. The degree of non-price competition.