Economics Now having some knowledge of perfect competition and how/why it's generally experienced only in commodity markets, and that's not an absolute, discuss why the market for housing -though competitive- doesn't function under the theory of perfect competition. Hint: take each of the tenets of perfect competition and ask yourselves (for example) "Are all house the same (homogenous)?"; "Do sellers face buyers with 'few' choices?" -get the idea? In essence, you're describing why real estate isn't perfectly competitive and how those characteristics we studied often do not apply. Enjoy the learning!
Economics Now having some knowledge of perfect competition and how/why it's generally experienced only in commodity markets, and that's not an absolute, discuss why the market for housing -though competitive- doesn't function under the theory of perfect competition. Hint: take each of the tenets of perfect competition and ask yourselves (for example) "Are all house the same (homogenous)?"; "Do sellers face buyers with 'few' choices?" -get the idea? In essence, you're describing why real estate isn't perfectly competitive and how those characteristics we studied often do not apply. Enjoy the learning!
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 9SCQ: Productive efficiency and allocative efficiency are two concepts achieved in the long mm in a...
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Economics
Now having some knowledge of perfect competition and how/why it's generally experienced only in commodity markets, and that's not an absolute, discuss why the market for housing -though competitive- doesn't function under the theory of perfect competition.
Hint: take each of the tenets of perfect competition and ask yourselves (for example) "Are all house the same (homogenous)?"; "Do sellers face buyers with 'few' choices?" -get the idea? In essence, you're describing why real estate isn't
Enjoy the learning!
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