Question

In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than its competitors'.

Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care about who sells them their socks. The technology for producing socks is widely known, and any reputable person who wanted to start a sock manufacturing business could obtain a loan from a bank to buy the necessary machinery.
In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. Consumers don't care which cab company they take—if they decide it's worth taking a cab, they flag down the nearest one. The government has granted a patent to a drug company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
1. How many firms?
A.One
B. Many or Few
2. Type of product
A. Unique
B. Anything
C. Standardized
D. Differentiated
3. Market Value
A. Perfect competition
B. Oligopoly
C. Monopolistic competition or monopoly

Answer 1

Answer: The answer is provided below

Step-by-step explanation:

Coffee shop chain:

Many firms are supplying the needs of the market. But there is one particular coffee shop that has many customerw because it tastes bette. It is a differentiated product due to the fact that consumers feels it tastes is better than the taste of others. This is monopolistic competition.

White socks company:

Many firms arr producing the same output. This is a standardized product because each firm produces same homogenous output. This is a perfect competition. In a perfect competition, each firm is the price taker.

Taxi companies:

Few firms, or to be more precise only two taxi companies are in the market. We can deduce that their product is anything homogenous because the customers do not differentiate. Therefore the firms are in the oligopoly market.

Patented drug:

Only one single firm is in operation in the market, therefore this is a monopoly. There is one single seller in the market selling a unique drug that no firm else sells.