Chapter 7 Reading Guide Name: Class:
7.1—Summarize the introduction
Depending on the market, consumers can have multiple choices of products to choose from or they will
only have a few options to choose from. The article mentions being in cell phone jail because while
consumers have choices for cell phone plans, stipulations like breaking contracts early or purchasing a
new phone prohibit switching cell phone companies.
7.2 What is Perfect Competition
What are the four characteristics that define a market?
1. Number of producers
2. Similarity of producers
3. Ease of entry
4. Control over prices
Give an example of a product or industry that is close to being perfectly competitive.
Commercial fishing
What four characteristics of perfect competition?
