A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description. 1. Automotive Industry: In this industry, there are a fewsellers that tend to dominate the market.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly2. Beef Industry: There are many different suppliers ofthese products, which prevents any one of them fromsetting prices.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly3. Soda Industry: In this industry the products are verysimilar, although consumers perceive them as being verydifferent.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly4. Agricultural Commodities: There are many differentgrowers of these products, which prevents any one ofthem from setting prices.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly5. Airline Industry: In this industry, there are a few sellersthat tend to dominate the market. 5. Airline Industry: In this industry, there are a few sellersthat tend to dominate the market.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly6. Athletic Shoe Industry: In this industry the products arevery similar, although consumers perceive them as beingvery different.O Perfect CompetitionMonopolistic CompetitionO OligopolyO Monopoly7. ACME Light and Power: Through special legislation, thissupplier is the sole provider of electricity to its localmunicipalities.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly8. Cable Television Industry: In smaller markets, onecompany is the sole provider of cable television service toconsumers in local municipalities.O Perfect CompetitionO Monopolistic CompetitionO OligopolyO Monopoly

1 Oligopoly market if there is a few sellers dominating the market, it is refer to the Oligopoly…

Answered: utomotive industry: in this industry,…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 1.2P

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A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description.

1. Automotive Industry: In this industry, there are a few
sellers that tend to dominate the market.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
2. Beef Industry: There are many different suppliers of
these products, which prevents any one of them from
setting prices.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
3. Soda Industry: In this industry the products are very
similar, although consumers perceive them as being very
different.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
4. Agricultural Commodities: There are many different
growers of these products, which prevents any one of
them from setting prices.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
5. Airline Industry: In this industry, there are a few sellers
that tend to dominate the market.

5. Airline Industry: In this industry, there are a few sellers
that tend to dominate the market.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
6. Athletic Shoe Industry: In this industry the products are
very similar, although consumers perceive them as being
very different.
O Perfect Competition
Monopolistic Competition
O Oligopoly
O Monopoly
7. ACME Light and Power: Through special legislation, this
supplier is the sole provider of electricity to its local
municipalities.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly
8. Cable Television Industry: In smaller markets, one
company is the sole provider of cable television service to
consumers in local municipalities.
O Perfect Competition
O Monopolistic Competition
O Oligopoly
O Monopoly

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