Question

Determine whether the markets, businesses, or products listed below belong in a competitive market, a monopoly, or a monopolistically competitive market.

Items (6 items) (Drag and drop into the appropriate area below)

American Eagle

Burger King

Merck's cholesterol-fighting drug

your local electric company

the stock market

a farmer who grows corn

Categories:

Monopoly

Monopolistic comp.

Competitive market

Answer 1

American Eagle -Monopolistic Competitive - There are many firms which is of one of the number of clothing and accessories retailers in the market where no business have total control over market.

Burger king- These also a monopolistic competitive market are many producers who sell same product but they are differentiated by branding.

Merk's cholesterol fighting is a monopoly as there is one firm that produce this drug

Local electric company- This is a monopoly as it is owned by a local loop where it is the only source for the particular locality

Stock market comes under competitive market as there are large number of producers who want to earn profits .Here the market prices varies depending on competition

A farmer who grows corn: Competitive market because there are so many people who grows corn and sell in the market.Here the market prices varies depending on competition