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Pure competition, pure monopoly, monopolistic competition, and oligopoly

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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.

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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 ...

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