How to Categorize Companies into Market Structures
Not what you're looking for?
1. (20 points) In the following list is a number of well-known companies and the product that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, oligopoly) best characterizes the markets in which they compete? Explain why. Hint: You may wish to distinguish between national and local/regional markets for some firms.
a. McDonald's - hamburgers
b. Exxon-Mobil - gasoline
c. Dell - personal computers
d. Heinz - ketchup
e. Proctor & Gamble - disposable diapers
f. Starbucks - gourmet coffee
g. Domino's - pizza
h. Intel - computer chips for PC's
Purchase this Solution
Solution Summary
This solution helps students classify/categorize companies into their relevant market structures.
Solution Preview
The basic characteristics of pure (perfect) competition, monopoly, monopolistic competition, and oligopoly market structures are as follows:
In pure competition, there are a large number of firms competing for sales on the same or very similar products. The products are standard and not differentiated. In this market companies are price takers in that they do not have a lot of leeway in changing the prices of the products but have to adjust their efforts to ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.