Final answer:
Goods such as soft drinks fall under oligopoly, dominated by brands like Coca-Cola and Pepsi, while services like massage therapy, exercise drinks, office supply stores, accountants, colleges and universities and astrology are examples of monopolistic competition, where differentiation and variety are common.
Step-by-step explanation:
In the following list of goods and services, we will determine whether each item is produced under conditions of monopolistic competition or of oligopoly.
a. Soft drinks: Oligopoly. The U.S. soft drink industry is dominated by Coca-Cola and Pepsi.
b. Exercise drinks: Likely monopolistic competition due to the variety and differentiation of products, but it could be approaching oligopoly if a few brands dominate.
c. Office supply stores: Monopolistic competition, with many stores offering differentiated products and services.
d. Massage therapists: Monopolistic competition, as numerous therapists offer various specialized services.
e. Accountants: Monopolistic competition, as many accountants provide differentiated services.
f. Colleges and universities: Monopolistic competition, with each institution offering unique programs and qualities.
g. Astrologists: Monopolistic competition, due to the personal and differentiated nature of the services provided.
In monopolistic competition, firms sell products that are differentiated from one another, which is a key aspect of how they compete.
Oligopolistic markets feature a small number of firms that dominate and often actively consider the actions of their competitors when making decisions.