1. Characteristics of competitive markets The competitive market model depends on the following three core assumptions: 1. There must be many buyers and sellersa few players can't dominate the market. 2. Finns must produce an identical productbuyers must regard all sellers' products as equivalent. 3. Finns and resources must be fully mobile, allowing free entry into and exit from the industry. The rst two conditions imply that all consumers and rms are price takers. While the third is not necessary for price-taking behaylor, assume for this problem that a market cannot maintain competition in the long run without free entry. Identify whether or not each of the following scenarios describes a competitive market, along with the c'omect explanation of why or why not. Scenario Is the market competitive? v Several online retailers sell vintage crewneck sweatshirts. Each shop's crewnecks are characterized by the style of that particular brand. In addition, some producers use only cotton while others use a polyester blend, a distinction reected in the price of the crewnecks. There are thousands of ninth and tenth graders in need of geometry tutoring services in San Diego. Of the twenty or so companies in town currently offering geometry tutoring, parents of high schoolers view the quality of each individual tutoring service to be about the same. Gentoo Inc. controls the copyright to a popular series of mystery noyels. It is the only company with the right to legally publish books in the series in the United States. Two ride share apps service a large percentage of a big city market. Consumers do not prefer one app over the otherif they choose to order a ride, they opt to use the app with the shortest wait time