Question

2. Market structures For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.

Scenario 

A large city has lots of small shops where people can buy sweaters Each store's sweaters reflect the style of that particular store Additionally, some stores use higher-quality cotton than others, which is reflected in their price.

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 small town, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever.

 The government has granted the U.S. Postal Service the exclusive right to deliver mail.

Answer 1

- a large city has..... Many, differentiated, monopolistic competition

- Dozens of companies.....many, identical, perfect competition

- in a small town..... Few , identical, oligopoly

- the government has..... One, unique, monopoly