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Match the images with the market structures they represent:

A) 1-oligopoly, 2-monopoly, 3-monopolistic competition, 4-perfect competition
B)1-perfect competition, 2-oligopoly, 3-monopolistic competition, 4-monopoly
C)1-monopoly, 2-perfect competition, 3-oligopoly, 4-monopolistic competition
D)1-monopolistic competition, 2-monopoly, 3-perfect competition, 4-oligopoly

Match the images with the market structures they represent: A) 1-oligopoly, 2-monopoly-example-1
User AggieEric
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2 Answers

3 votes

Answer:

The correct answer is C. The Major League Baseball is a monopoly, since it controls all the baseball market in North America; strawberry vendors compete in a perfect competition system, since no vendor has more benefits than others, but only those that the market gives to them; the movie industry is an oligopoly, as only a few big companies control the business; and the restaurant industry falls within a monopolistic competition, since there are many vendors that try to keep the market, but none of them controls it efficiently.

Step-by-step explanation:

1- A monopoly is a situation in which a product or service is only offered by a single market party. The price is then not determined by market forces, but determined by the only supplier, who can then make a lot of profit, or by the government.

2- Perfect competition is an economic concept for some special market conditions where no player can influence the price of a product alone on the market.

3- An oligopoly is a market form that occurs in the market when there are only a few sellers. Oligopoly markets are sometimes characterized by high product differentiation. If the few sellers agree on prices, it is called a cartel.

4- Monopolistic competition arises when the market is very heterogeneous, that is, customers have a variety of products, with a distinct identity to choose from within the same industry. A common example is clothing.

User Eric Sauer
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4 votes

Answer:

The correct answer is C.

Step-by-step explanation:

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User ISa
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