Perfect Competition: An example of perfect competition industry in which I have

Question

Perfect Competition: An example of perfect competition industry in which I have been a customer would be agriculture. Weekly I am shopping for vegetables and fresh products at various grocery stores. The producers are also known as price takers. A product in this industry includes carrots, which is a standardize product that is produced by various farmers. There are no important barriers that prevent a farmer from choosing to grow one product instead of another. Sprouts, Walmart, and Farmers Markets are all selling these identical products, and consumers don't have very many options when it comes to purchasing carrots. The prices are very easy to compare with these products as well. The pricing is determined by the market supply and demand Government Interaction for perfect competition would be detrimental, and would lead to imbalances in the market place Monopolies: An example of a monopoly company where I have been a customer of, is my electric company. When l use to live in a small town, my options of choosing an electric company are limited to one. This business fits intoa monopoly, because it does not share a demand with other companies like itself. While this may not be the case for all towns, all of the buildings and homes in that small town are serviced by the same electric company. The electric company cannot raise or lower the prices as they wish, but it is set at a certain price. The price of one's electric will simply be measured by how much electric a consumer uses Government interaction for a monopoly would be beneficial to prevent excess prices and to have regulation Monopolistic Competition: An example of a monopolistic competition in which I have been a customer in would be in the purchasing of my smartphone. Apple is part of monopolistic competition. Along with Apple, there are hundreds of different types and brands of smartphones. Therefore, there is a great amount of smartphone companies that are competing against each other daily. Just a couple of these competing brands include Apple, Samsung, HTC, and Motorola. These companies do have some control to raise and lower the prices of their phones They also have the control to charge different prices for the products they produce for their consumers

Explanation / Answer

The author made a perfect verse of the different market structure that exists on the whole but however though he perfectly described perfect competition and also a monopoly, there can be a slight objection with the example he has taken for describing the monopolistic competition and this is all because of the fact that many consider mobile companies as an oligopoly market structure and this is because there aren't hundreds of mobile phone manufacturers etc and though the product comes under differentiated product, it comes under oligopoly and there can be better examples of monopolistic competitions such as restaurants etc.

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