Firms in Competitive Markets – Flashcards

There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.

A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.

The government has granted the U.S. Postal Service the exclusive right to deliver mail.

There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.

If a competitive firm produces a positive output, it does so by choosing to produce the quantity at which