Economics Complete

ANSWER THE FOLLOWING QUESTIONS IN AT LEAST 100 WORDS PER QUESTION, USE TEXT AS A REFERENCE NO OUTSIDE SOURCES ARE NEEDED. THE REFERENCE TO THE TEXT

IS: Sexton, R. L. (2013). Exploring Economics (6^th ed.). South-Western Cengage Learning.

Choose a market or industry that you think is close to perfectly competitive. Then, explain whether or not your choice meets each of the characteristics shown in section 12.1 of the text book. Is the market really perfectly competitive? Can absolute perfect competition exist in the “real world?”
Take a look at the latest annual report for the Tennessee Regulatory Authority at:
http://www.state.tn.us/tra/reports/annualrpts/anlrpt1213.pdf

What types of industries does TRA regulate? Choose a specific company that would fall within one of those industries. Why is this firm (and others within the industry) regulated?
Do each of characteristics of monopoly shown in section 13.1 of the textbook apply to the firm you have chosen in question #2? Explain why or why not each characteristic would or would not apply to your firm.

S E C T I O N Q U I Z

1. Perfectly competitive markets tend to have a ____ number of sellers and a(n) ____ entry.

a. large; easy

b. large; difficult

c. small; easy

d. small; difficult

2. In perfectly competitive markets, products are ____ and sellers are ____.

a. homogeneous; price takers

b. homogeneous; price searchers

c. substantially different; price takers

d. substantially different; price searchers.

3. Perfectly competitive markets have ____ sellers, each of which produces a ____ share of industry output.

a. few; substantial

b. few; small

c. many; substantial

d. many; small

(continued)

What are the three characteristics of a perfectly competitive market?