TYPE OF PRODUCT: Heterogenous, identical, anything, or unique ENTRY: Easy, chall
ID: 1118107 • Letter: T
Question
TYPE OF PRODUCT: Heterogenous, identical, anything, or unique
ENTRY: Easy, challenging, or impossible
MARKET MODEL: Monopoly, monopolistic competition, oligopoly, or perfect competition
7. Market structures Aa Aa For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure Number of Scenario Firms Type of Product Entry Market Model A large city has lots of small shops where people can buy sweaters. Each store's sweaters reflect the style of that particular store. Additionally, some stores use higher-quality cotton than others, which is reflected in their price 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 passes inspections can acquire and maintain their licence In a small city, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever The government has granted Canada Post the exclusive right to deliver mailExplanation / Answer
Number of firms Type of product Entry Market Model Lots Many Heterogenous Easy Monopolistic competition Dozen Many Identical Easy Perfect competition Four Few Identical Challenging Oligopoly Government One Unique Impossible Monopoly
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