Asked by Jincy Robin on Jul 29, 2024
Verified
"The water that comes out of your faucets at home is not supplied by a competitive firm." Explain why this statement is correct.
Competitive Firm
A business operating in a market where it has little to no control over the price of its product, typically because the market has many sellers and buyers.
- Examine the unique attributes of competitive markets, including market structure and the behavior of firms within these markets.
Verified Answer
JS
Jared SambergJul 29, 2024
Final Answer :
In order to be a competitive firm, the supplier of your water would have to be one of many sellers of water. In fact, it is likely that there is only one firm (or governmental unit) that supplies water to homes in your community.
Learning Objectives
- Examine the unique attributes of competitive markets, including market structure and the behavior of firms within these markets.
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