Consumers in a perfectly competitive market structure are considered to be price takers.

Question

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Answer 1

Question

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

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Explain why you think that the demand of one product may diminish as prices are increased

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Answer 2

Question

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

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Answer 4

Question

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

Answer 6

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.

Answer 7

Chapter 5, Problem 1Q

To determine

Consumers in a perfectly competitive market structure are considered to be price takers.

Answer 8

Expert Solution & Answer

Explanation of Solution

In a perfectly competitive market structure, there exist large number of buyers and sellers trading in homogenous goods. So, the price for the industry of particular goods and services is determined by their market demand and supply.

Further, all the consumers participating in a perfectly competitive market individually comprise a negligible part of the market. One single consumer cannot influence the price for the entire market. Therefore, consumers are considered as price-takers in a perfectly competitive market.