quanda16 - Chapter 16 1. In which market structure would...

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Practice Questions to accompany Mankiw & Taylor: Economics 1 Chapter 16 1. In which market structure would you place each of the following products: monopoly, oligopoly, monopolistic competition, or perfect competition? Why? a. Retail market for water and sewerage services Answer: Monopoly, only one firm from which to purchase. b. Economics textbooks Answer: Monopolistic competition, many firms each selling differentiated products. c. Economics, by N. Gregory Mankiw and Mark P. Taylor Answer: Monopoly, only one firm can produce it due to copyright laws. d. Photographic film Answer: Oligopoly, few firms (Fuji, Kodak) selling similar products. e. Restaurants in a large city Answer: Perfect competition, many firms selling identical products. f. Car tyres Answer: Oligopoly, few firms (Goodyear, Bridgestone, Michelin) selling very similar products. g. Breakfast cereal Answer: Oligopoly, few firms (Kellogg’s, Nestle) selling similar products. h. Gold bullion Answer: Monopoly, only one firm from which to purchase. i. Air travel from any one airport Answer: Oligopoly, few airlines from which to choose at any one airport, similar product. Note: While monopoly and competition are more easily distinguished, the line between oligopoly and monopolistic competition is not as sharp. For example, (b) might be considered to be an oligopoly since there are relatively few publishers and economic text books may be
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This note was uploaded on 07/06/2009 for the course BUS BAM303 taught by Professor Na during the Spring '09 term at 東京大学.

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quanda16 - Chapter 16 1. In which market structure would...

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