Question

Hundreds of colleges serve millions of students each year. The colleges vary by location, size, cost, and educational quality, which allows students to match schools to their diverse preferences.

Answer 1

The market model here is a perfect competition competition among colleges.

Step-by-step explanation:

Perfect competition market, or atomistic market, is a situation in which all elements of monopoly are absent and market price of a commodity is beyond the control of individual buyers and sellers. The colleges are in a perfect market because each student has individual preferences to decide on which college to seek admission.

All colleges give millions of students equal opportunities for a good quality education, and have a lot of programmes and activities to ensure proper and adequate personal development for each student.

Since the decision of an individual student to select preferred college can not be influenced directly by any of the colleges, then the market condition among them is a perfect market.

Answer 2

But they have not an identical product

Step-by-step explanation:

Every college has its own form of teaching, and is stablished by the platform and literature of each college