Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 13

Consider a firm that operates in a market that competes aggressively in prices Due to the high fixed cost of obtaining the technology associated with entering this market, only a limited number of other firms exist. Furthermore, over 70 percent of the products sold in this market are protected by patents for the next eight years. Does this industry conform to an economist's definition of a perfectly competitive market?