Characteristics of perfectly competitive markets The model of perfectly competitive markets relies on these three core assumptions: 1. There must be many buyers and sellersa few players can't dominate the market. 2. Firms must produce a homogeneous productbuyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing for free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, 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 perfectly competitive market, along with the correct explanation of why or why not. Scenario Perfectly competitive? The government has granted the U.S. Postal Service the exclusive right to deliver mail. 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. There are hundreds of high school students in need of algebra tutoring services in San Diego. Dozens of companies offer tutoring services