Question

Topic: Perfect Competition

Description:

Find an article in a magazine or newspaper of your choice about a product, company or industry that contains references to some of the features of Perfect Competition. Discuss why you think the product or company is (or isn’t) in a Perfectly Competitive market. Your analysis must relate to the concepts learned in this course. Suggested sources are the Globe & Mail, National Post or The Economist, but many other sources are suitable. Submit the article, along with a summary and a brief analysis of the article in your own words. The reflection should be about 200-300 words.

Article: https://www.thepostathens.com/article/2018/10/apple-farmers-orchards-athens-ohio

Answer 1

The industry in the given article is not perfectly competitive. The reasons are as below:

1. There are only few vendors who sell apples in Athens, while there are a large number of sellers in a perfectly competitive industry.

2. The product is not homogenous here. There is slight differentiation in apples from sweet to tart to rich.

3. There is no free entry and exit in the apple industry. Those few vendors are there in the industry for decades. This reflects it is not so easy to enter the market.

4. Price of the apples is not constant. It may differ due to differentiation.