Final answer:
The idea that Apple and Samsung's market dynamics represent perfect competition is false. They are part of an oligopoly where they compete and collaborate, with Samsung supplying components to Apple. This trading relationship benefits both parties by allowing specialization.
Step-by-step explanation:
The statement that Apple's success with the iPhone prompting Samsung and others to enter the market is an example of perfect competition is false. The mobile phone industry is characterized by oligopolistic competition where a few companies dominate the market. Although Apple and Samsung are direct competitors in the smartphone market, they also maintain a supplier relationship, where Samsung provides key components for Apple's iPhone. This complex dynamic exemplifies the international trade concept where companies focus on their competitive advantages, resulting in mutually beneficial trade relationships. Samsung, as one of the world's largest electronics parts suppliers, specializes in creating the best parts for Apple's iPhone which enables Apple to focus on its strength of designing elegant, user-friendly products. This specialization and trade illustrate the economic principle where if each company (and by extension, each country) concentrates on what it does best, there will be gains for all through trade.