QQuestionBusiness Management
QuestionBusiness Management
You have learned about the four types of market structures: perfectly competitive, monopolistically competitive, Monopoly, and oligopoly. in the tables below, select the characteristics for the appropriate markets
of firms options: few large, one firm, many small, many sizes
entry& exit into market options: very difficult, show me easy, very easy, almost impossible.
influence over price options: none, large control, very little, total control.
Advertising done by firms options: no advertising, little advertising, extensive.
product differences options: few different, many different, one product, identical products.
example firm options: city, water, gas, strawberries, fast food.
| Types | Number of Firms | Entry & Exit Into Market | Influence Over Price |
| --- | --- | --- | --- |
| Perfectly Competitive Markets | ☑ | ☑ | ☑ |
| Monopolistically Competitive Markets | ☑ | ☑ | ☑ |
| Oligopoly Markets | ☑ | ☑ | ☑ |
| Monopoly Markets | ☑ | ☑ | ☑ |
# Market Structures: Table 2
| Types | Advertising Done by Firms | Product Differences | Example Firms |
| --- | --- | --- | --- |
| Perfectly Competitive Markets | ☑ | ☑ | ☑ |
| Monopolistically Competitive Markets | ☑ | ☑ | ☑ |
| Oligopoly Markets | ☑ | ☑ | ☑ |
| Monopoly Markets | ☑ | ☑ | ☑ |
12 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1:I'll provide a clear and accurate solution for the given homework problem.
I'll go through each market structure and fill in the appropriate characteristics for number of firms, entry and exit into the market, influence over price, advertising done by firms, product differences, and example firms. **Perfectly Competitive Markets**
Step 2:
Number of Firms: Many small
Step 3:
Entry & Exit Into Market: Very easy
Step 4:
Influence Over Price: None
Step 5:
Advertising Done by Firms: No advertising or little advertising
Step 6:
Product Differences: Identical products
Step 7:
\text{Perfect Competition: }
Example Firms: City (as a location) water, gas, agricultural products like strawberries \begin{array}{ccc} \boxed{\text{Many small}} & \boxed{\text{Very easy}} & \boxed{\text{None}} \ \text{firms} & \text{entry/exit} & \text{influence over price} \ \end{array} **Monopolistically Competitive Markets**
Step 8:
Number of Firms: Many, many sizes
Step 9:
Entry & Exit Into Market: Easy
Step 10:
Influence Over Price: Very little
Step 11:
Advertising Done by Firms: Little advertising or extensive advertising
Step 12:
Product Differences: Many differentiated products
Step 13:
\text{Monopolistic Competition: }
Example Firms: Fast food chains, clothing stores, electronics manufacturers \begin{array}{ccccc} \boxed{\text{Many, many sizes}} & \boxed{\text{Easy}} & \boxed{\text{Very little}} & \boxed{\text{Little or extensive}} & \boxed{\text{Many differentiated}} \ \text{firms} & \text{entry/exit} & \text{influence over price} & \text{advertising} & \text{products} \ \end{array} **Oligopoly Markets**
Step 14:
Number of Firms: Few large
Step 15:
Entry & Exit Into Market: Very difficult or almost impossible
Step 16:
Influence Over Price: Large control or very little control
Step 17:
Advertising Done by Firms: Little advertising or extensive advertising
Step 18:
Product Differences: Few differentiated products or one product
Step 19:
\text{Oligopoly: }
Example Firms: Automobile manufacturers, smartphone manufacturers, cable TV providers \begin{array}{cccccc} \boxed{\text{Few large}} & \boxed{\text{Very difficult or almost impossible}} & \boxed{\text{Large control or very little control}} & \boxed{\text{Little or extensive}} & \boxed{\text{Few differentiated or one product}} \ \text{firms} & \text{entry/exit} & \text{influence over price} & \text{advertising} & \text{products} \ \end{array} **Monopoly Markets**
Step 20:
Number of Firms: One firm
Step 21:
Entry & Exit Into Market: Almost impossible
Step 22:
Influence Over Price: Total control
Step 23:
Advertising Done by Firms: No advertising, little advertising, or extensive advertising
Step 24:
Product Differences: One product or few differentiated products
Step 25:
\text{Monopoly: }
Example Firms: Public utilities (water, electricity), cable TV providers, Amazon (in some markets) \begin{array}{cccccc} \boxed{\text{One firm}} & \boxed{\text{Almost impossible}} & \boxed{\text{Total control}} & \boxed{\text{No advertising, little, or extensive}} & \boxed{\text{One product or few differentiated}} \ \text{firms} & \text{entry/exit} & \text{influence over price} & \text{advertising} & \text{products} \ \end{array} **
Final Answer
Perfect Competition: Many small firms, very easy entry/exit, no influence over price, no or little advertising, identical products, example firms: city, water, gas, strawberries Monopolistic Competition: Many firms of various sizes, easy entry/exit, very little influence over price, little or extensive advertising, many differentiated products, example firms: fast food, clothing stores, electronics manufacturers Oligopoly: Few large firms, very difficult or almost impossible entry/exit, large or very little influence over price, little or extensive advertising, few differentiated products, example firms: automobile manufacturers, smartphone manufacturers, cable TV providers Monopoly: One firm, almost impossible entry/exit, total control over price, no advertising, little, or extensive advertising, one product or few differentiated products, example firms: public utilities, cable TV providers, Amazon (in some markets)
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students