Pure competition, pure monopoly, monopolistic competition, and oligopoly
Not what you're looking for?
Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you or your family has an account; (e) the automobile industry. In each case justify your classification.
Purchase this Solution
Solution Preview
Characteristics of Pure competition:
- Number of firms - Very large
- Products - Standardized
- Price - individual firm is a price taker (no control)
- Entry barriers - No
- Non-price competition - No
Characteristics of Pure Monopoly:
- Number of firms - One
- Products - Unique (no close substitute)
- Price - Good control over price (price maker)
- Entry barriers - Yes
- Non-price competition - There is no competition for a pure monopoly
Characteristics of Monopolistic competition:
- Number of firms - many (less than pure competition)
- Products - Differentiated products
- Price - some control within a price ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
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.