Answer to Question #69934 in Microeconomics for Nimnaz Haniffa

Question

is it true that the main characteristics of markets in which firms operate in the real world are different. explain.

Answer 1

It is true that the main characteristics of markets in which firms operate in the real world are different, because, for example, competitive firms produce homogeneous products, can't set the price and there are no barriers to entry in the market. But monopolists can set the price, produce differentiated product and there are significant barriers to entry in the market.