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Grade 12 Learning ResourcesEconomics Grade 12 Study ResourcesThe Dynamics of Perfect Markets Questions and...

The Dynamics of Perfect Markets Questions and Answers

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A perfect market is a market situation where there are large number of buyers and sellers dealing in a homogeneous product at a price fixed by the market. The goods are sold at uniform price and is fixed by the industry and not by any particular firm.

The Dynamics of Perfect Markets Questions and Answers

On this page we are Discussing about Dynamic Of  Perfect Markets Questions and Answers.

Activity 1
Study the diagram below and answer the questions that follow.
act1

  1. Define the concept market structure. (2)
  2. How many sellers will one find in a monopoly market? (2)
  3. In what market are all participants price-takers? Motivate your answer. (4)
  4. Explain the shape of the individual demand curve under perfect competition. (4)
  5. Under which market structure will you place the following businesses?
    • KFC
    • Eskom
    • Vodacom (6)
  6. Explain in your own words the message behind the pie-charts shown above. (4)

[22]

Answers to activity 1

  1. Market structure refers to how a market is organised33 (2)
  2. One 33 (2)
  3. Perfect markets 33 there are too many producers and
    consumers for one producer to influence the price 33 (4)
  4. Horizontal to the quantity axis/perfectly elastic 3333 (4)
  5. KFC: monopolistic competition 33 Eskom: monopoly 33
    Vodacom: oligopoly 33 (6)
  6. Under perfect competition there are many sellers and
    buyers.3Under monopolistic competition there are many
    sellers and a few buyers.3 In the oligopoly there are many
    buyers but few sellers. 3 In a monopoly there is only one seller
    but many buyers.3 (4)

[22]

 

 

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