(Solved): 1. 1. Characteristics of competitive markets The competitive market model depends on the following t ...

1. Characteristics of competitive markets The competitive market model depends on the following three core assumptions: 1. There mustye 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 fert two conditions imply that all consumers and firms are price takers. Whise 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: t.dawik. whathes ar not each of the following scenarios describes a competitive maricet, along with the correct explanation af why or wity not. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for peice-taking behavioe, assume for this problem that a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why of wiy not.