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1. Characteristics of competitive markets The model of competitive markets relies on these three core assumptions: 1. There must be many buyers and sellers—a few players can't dominate the market. 2. Firms must produce an identical product—buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry.

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Answer: Please refer to Explanation

Step-by-step explanation:

Hello. Question was a bit incomplete so I attached the completing details.

a) Several stores in the mall sell hooded sweatshirts. Each store's sweatshirts reflect the style of that particular store. Additionally, some stores use higher-quality cotton than others, which is reflected in the apparel�s prices.

- No, not an identical product

This is not a Competitive Market because the products are not identical. They are differentiated by better quality and design and this is reflected in the price.

b) In a small town, there are two providers of broadband Internet access: a cable company and the phone company. The Internet access offered by both providers is of the same speed.

- No, not many sellers.

There are only 2 sellers in this market. This market is too SATURATED ( few companies) for it to be a Competitive Market as a Competitive Market requires that there be many buyers and sellers.

c) Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care who manufactures their socks.

- Yes, meets all the assumptions.

This market meets all the assumptions to be considered a Competitive Market. There are many buyers and sellers of the white socks. The firms in the market produce identical socks so much so that people don't know the difference. Markets like these usually have low barriers to entry hence the high amount of companies there.

d) Scholastik Inc. owns the U.S. copyright to a popular book series. It is the only company with the legal right to publish books in the series in the United States.

- No, no free entry.

As stated, Scholastik Inc. is the ONLY company with legal rights to publish books in that series in the US. This means that there are very high barriers to entry as Scholastik is protected by the law. No other company is allowed to do what they do so it is not a Competitive Market.

1. Characteristics of competitive markets The model of competitive markets relies-example-1
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