12. Market structures For each of the following scenarios, identify the number o
ID: 1107714 • Letter: 1
Question
12. Market structures For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table. Number of Firms Scenario There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who passed inspections can acquire and maintain their license. In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. Consumers don't care which cab company they take-if they decide it's worth taking a cab, they flag down the nearest one. The government has granted a patent to a drug company for an experimental AIDS drug. That company is the only firm permitted Type of Product Market ModelExplanation / Answer
a. In the above education market, the product many firms in this industry, the product is differentiated and this is monopolistic competition type of market model.
b. There are many pasta producers in the market, a standardized product is being sold, and monopolistic type of market model exists.
c. There few firms in the industry, standardized product is being sold and oligopoly type of market model exists.
d. There is single firm in the industry selling a unique product and monopoly type of market model exists.
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