Nate Neroni
Ch 9 HW
1. Pure competition- large number of independan acting sellers, standardized product, individual firm
cannot change a market price, firms can freely enter and exit the market.
Pure monopoly- one firm is the
sole seller of a product.
Monopolistic competition- large number of sellers producing differentiated
products, enrty and exit is easy.
Oligopoly- a few sellers of a standardized product so each firm is
affected by the decisions of its rivals.
A) oligopoly because there is probably only a few supermarkets so
each firm will be affected by other decisions of the firms.
B) pure competition because there are a large
number of sellers and it would be futile to change the price a particular firms steel.
C) pure competition
because there are a large number of sellers and it would be futile to change the price of a farms wheat.
D)
oligopoly because there are probably only a few banks in a town.
E) monopolistic competition because
there are a large number of sellers each selling their product with differences.
2. We should study pure competition because the market model is highly relevant.
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This note was uploaded on 03/03/2008 for the course ECON 203 taught by Professor Al-sabea during the Fall '05 term at USC.
- Fall '05
- Al-Sabea
- Microeconomics, Monopoly
-
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