Question 1 (Total: 10 marks) Grocery stores and petrol kiosk in a large city appear to be example of competitive markets

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Question 1 Total 10 Marks Grocery Stores And Petrol Kiosk In A Large City Appear To Be Example Of Competitive Markets 1 (34.93 KiB) Viewed 9 times

Question 1 (Total: 10 marks) Grocery stores and petrol kiosk in a large city appear to be example of competitive markets. There are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar. (a) (b) (c) How would you argue that these markets are not competitive? Explain with economic reasonings. (4 marks) Based on part (a), what do you expect the demand curve of each firm will be like? Explain. (3 marks) What will be the firm's profit level in the long-run equilibrium? Explain. (3 marks)