Question

Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.Scenario1-There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.2-The government has granted the U.S. Postal Service the exclusive right to deliver mail.3-A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.4-There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.

Answer 1

1. yes it is a competitive market because it meets all the assumptions of being a competitive market

2. no because there is no free entry in the market

3. no because there are only limited sellers in the market

4. no because the product is not homogeneous.

Step-by-step explanation:

Competitive market is a kind of market which has in it various sellers involved who are selling the same kind of product that is the product in the competitive market is homogeneous in nature.

The entry and the exit of the sellers in this kind of market is not restricted and they are allowed to have free entry and exit in the market. The number of sellers is also large.