Final answer:
a. Wooden pencils: Perfectly competitive market. b. Bottled water: Monopolistically competitive market. c. Copper: Oligopoly market. d. Local telephone service: Monopoly market. e. Peanut butter: Monopolistically competitive market. f. Lipstick: Monopolistically competitive market. g. Cola: Oligopoly market. h. Beer: Oligopoly market.
Step-by-step explanation:
a. Wooden pencils: Perfectly competitive market. In a perfectly competitive market, there are many buyers and sellers of a standardized product, and entry and exit are relatively easy. There are many manufacturers of wooden pencils that sell similar products, and consumers have many options to choose from.
b. Bottled water: Monopolistically competitive market. In a monopolistically competitive market, there are many firms that sell similar but slightly differentiated products. There are numerous brands of bottled water available, each with different characteristics and marketing strategies.
c. Copper: Oligopoly market. In an oligopoly market, a few firms dominate the market. The copper market is dominated by a few large mining companies that control the majority of global copper production.
d. Local telephone service: Monopoly market. A monopoly market is characterized by a single seller that controls the entire market. Local telephone service is often provided by a single company granted exclusive rights to operate in a specific area.
e. Peanut butter: Monopolistically competitive market. Similar to bottled water, the peanut butter market is monopolistically competitive with many brands offering slightly different variations of peanut butter.
f. Lipstick: Monopolistically competitive market. There are numerous brands and variations of lipstick available, each with its own unique characteristics and marketing strategies.
g. Cola: Oligopoly market. The cola market is dominated by a few major companies, namely Coca-Cola and Pepsi, that control a significant share of the market.
h. Beer: Oligopoly market. There are a few large beer companies that dominate the market, such as Anheuser-Busch InBev and Heineken.