Question

Consider the markets for monitors, USB drives, central processing units, and Microsoft’s Windows. Assume monitor manufacturers use advertising to differentiate their products, the market for USB drives is controlled by many firms selling similar products, only a few firms control a large portion of the market for CPUs, and Microsoft owns the copyright on Windows. Classify the market for each of the following computer goods and services as either monopoly, oligopoly, monopolistic competition, or perfect competition. 1. Monitors

2. USB drives

3. Central processing units (CPUs)

4. Microsoft's Windows

Answer 1

See explaination

Step-by-step explanation:

Monopoly is a competition where there is a single seller and a single product in the market and hence no competition.

Monopolistic Competition is a competition where there are a large number of small firms competing with each other.

Oligopoly is a market that has a limited number of buyers and Sellers.

Perfect Competition is a market with large number of buyers and Sellers.

The pairing can be seen below:

1. Monitors is under monopolistic competition as there are a large number of firms competing.

2. USB drives this comes under perfect competition as there a large number of buyersand Sellers.

3. Central processing units (CPUs) this is under oligopoly as there a limited number of buyers and Sellers.

4. Microsoft's Windows this fall under monopoly market structure. They have no competition at all.