Types of Markets

Selling identical products is the characteristics for:

• Monopoly

• Monopolistic Competitive Market

• Oligopoly

• Perfectly Competitive Market

What is an oligopoly?

• It is a market structure in which products are always similar.

• It is a market structure in which a very few large sellers dominate the industry.

• It is a market structure in which one seller controls the industry.

• It is a market structure in which prices are similar between sellers.

Since the airline industry is controlled by only a few very big companies, which type of market structure would best describe it.

• Monopoly
• Perfect Competition
• Monopolistic Competition
• Oligopoly

DeBeers used to be the only supplier of diamonds. Which terms best describes this firm?

• Merger

• Monopolistic Competition

• Monopoly

• Oligopoly

Which is NOT a characteristic of a monopoly?

• Seller sets the market price
• Entry into the market is easy
• Firm sells a unique product
• One seller

There are many sellers of blue jeans.  Each blue jean seller makes their product slightly different to set it apart from others. There is free entry and exit into the blue jean market. Which market structure does this describe?

• Perfect Competition
• Oligopoly
• Monopoly
• Monopolistic Competition

In which market structure does a firm have greatest control over its product’s price?

• perfect competition
• monopoly
• oligopoly
• monopolistic competition

How many firms are there in a monopoly?

• 1
• 2-5
• Many

____________ market has absolutely no control over the price prevailing in the market

• Oligopoly

• Perfect Competition

• Monopolistic Competition

• Monopoly

Which of the following industries is an example of a monopoly?

• utilities/water

• department stores

• auto industry

• commercial airlines