Market Structures

An Oligopoly is when there are

• few producers who control the market

• only one producer

• an open market with plenty of producers

• a market that hasn't yet been discovered

The market for agricultural produce is an example of:

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

Coke and Pepsi are the main producers and control the soda market. This is an example of:

• Oligopoly

• Monopoly

• Monopolistic Competition

• Perfect Competition

When buying produce at the grocery store, many people shop around for the best deal, because when it comes down to it, an apple is an apple. This is an example of:

• monopoy

• monopolistic competition

• oligopoly

• perfect competition

Label the continuum of market structures.

a

b

c

d

Monopoly

Monopolistic Competition

Pure Competition

Oligopoly

Which of the following is described by the characteristics listed in the box?

• Monopoly

• Oligopoly

• Pure competition

• Monopolistic competition

Match statements below to the market to which it most closely relates. (Must be placed in alphabetical order.)

a

c

d

f

i

g

h

e

j

b

Benefits buyers

Similar products with higher prices

Highest prices

Lowest prices

Most price control for sellers

Most common type of market

Potential for collusion

Benefits sellers

Similar products

Most price control for buyers

Answer explanation

StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion that included Bumble Bee Foods and Chicken of the Sea. A federal judge in San Francisco ordered StarKist to pay a $100 million fine in a canned tuna price-fixing conspiracy involving the industry's top three companies.

If there is a ​ (a)   number of rivals in a market, we can conclude that there must be ​ (b)   barriers to entry. As a result, sellers must keep costs ​ (c)   since they cannot increase the ​ (d)   for which they can sell their products. This is typical of a ​ (e)   market.

• large

• few

• low

• price

• purely competitive

• monopolistically competitive

• oligopolistic

• small

• many

• high

Match the following companies to the correct market structure.

• Oligopoly

• PG&E

• Perfect Competition

• Burger King

• Monopoly

• Verizon Wireless

• Monopolistic Competition

• Straus Creamery

Match the following definition or image to the correct term.

• price makers

• 
• price takers

• 
• low barriers

• Firms cannot influence the market price of their products.

• high barriers

• Firms can dictate the price it charges for its goods because there are no substitutes.