Question

Identify each firm with its proper market structure.

a) A wheat farmer Monopolistic competition Natural monopoly Oligopoly Pure competition

b) Ford Motor Company Oligopoly Natural monopoly Monopolistic competition Pure competition c)

Bird's Eye Peas Oligopoly Natural monopoly Monopolistic competition Pure competition

d) Microsoft Windows operating system Oligopoly Pure competition Monopolistic competition Natural monopoly

Answer 1

a) A wheat farmer. Pure competition. Because the market for wheat has many buyers and sellers, homogeneous product, free entry and exit of labor, as well as, firms, perfect information.

b) Ford Motor Company is an example of oligopoly. There are few sellers who sell either homogeneous products or differentiated products.

c) Bird's Eye Peas is an example of monopolistic competition. Features of monopolistic competition are large number of sellers, differentiated products, free entry and exit.

d) Microsoft Windows operating system Monopoly as there is is only one seller who has control over the market.