You can use any business or firm you want.
Introduction
Even though some or most firms participate in markets that we will study in later chapters, firms do participate in markets that are perfectly competitive or close. Thus a good understanding of those types of markets is critical for firms in order to make good decisions. In this paper, you will examine markets in which your firm participates that are close to perfectly competitive. These markets are likely not for your firms’ output, but remember your firms are buyers in many markets.
Activity Instructions
For the particular firm/business you selected, describe the markets in which the firm participates that are close to perfectly competitive. Note that for most firms that students choose, the market for the firm’s output is not perfectly competitive: it more resembles monopolistic competition or oligopoly. However, it is very likely that some of the inputs to the firm’s production are close to perfectly competitive markets.
Besides your descriptive analysis above, answer the following questions:
Do those markets completely satisfy the assumptions of perfectly competitive markets?
Are there some assumptions that are just “mostly satisfied” or “nearly satisfied,” but close enough so that the ideas of Perfect Competition can still be applied?
What are those differences, if any exist?
How might those differences affect the conclusions of chapter 14?
Could there be external events that affect the perfectly competitive market? What changes might occur? (Think about what you learned in chapter 4.)
How would those changes affect your chosen firm and what decisions would your firm change (would those changes be drastic or minor)?
The post You can use any business or firm you want.
Introduction
Even though some or most appeared first on Solved Students Assignments.
