Question

a. Identify the basic characteristics of each of the following market models: 

i. Pure competition: 

ii. Pure monopoly

iii. Monopolistic competition:

iv. Oligopoly:

Answer 1

Pure competition: very large number of firms, no control over price,

Pure monopoly: one firm, unique product, much control over price

Monopolistic competition: differentiated products, many firms, some price control

Oligopoly: few firms, nonprice competition, many obstacles to entry

Answer 2

pure competition: select: very large number of firms, no control over price, no nonprice competition 

pure monopoly: select: one firm, unique product, much control over price

monopolistic competition:select: differentiated products, many firms, some price control 

oligopoly: select: few firms, standardized products, many obstacles to entry