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1. Characteristics of competitive markets The competitive market model depends on the following 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. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry. Identify whether or not cach of the following scenarios describes a competitive market, along with the correct explanation of why or why not Scenario Is the market competitive? There are thousands of ninth and tenth graders in need of geometry tutoring services in Miami. Of the twenty or so companies in town currently offering geometry tutoring. parents of high schoolers view the quality of each individual tutoring service to be about. the same, The government grants a patent to a pharmaceutical company protecting an experimental cancer treatment. That company is the only pharmaceutical producer allowed to The government grants a patent to a pharmaceutical company protecting an experimental cancer treatment. That company is the only pharmaceutical producer allowed to manufacture and sell the treatment. In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the intemet service offered by both In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the internet service offered by both providers is equally fast and reliable. Several online retailers sell vintage crewneck sweatshirts. Each shop's crewnecks are charecterized by the style of that particular brand. In addition, some producers use only cotton while others use a polyester blend, a distinction reflected in the price of the crewnecks. cancer treatment. That company is the only pharmaceutical producer allowed to manufacture and sell the treatment. In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the internet service offered by both providers is equally fast and reliable. Several online retailers sell vintage crewneck sweatshirts. Each shop's crewnecks are characterized by the style of that particular brand. In addition, some producers use only cotton while others use a polyester blend, a distinction reflected in the price of the crewnecks

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