Indicate which market structure characterizes each firm listed below by placing it under the correct label.
Understand the Problem
The question is asking to classify firms into different market structures: monopoly, oligopoly, monopolistic competition, and perfect competition. We need to evaluate each firm listed and determine which category they fit into based on characteristics of their market structure.
Answer
Apple: Oligopoly, Wheat Farm: Perfect Competition, Clothing Company: Monopolistic Competition, Utility: Monopoly, Coca-Cola: Oligopoly.
Apple, Inc. fits Oligopoly; a wheat farm fits Perfect Competition; a clothing company fits Monopolistic Competition; a local utility provider fits Monopoly; Coca-Cola fits Oligopoly.
Answer for screen readers
Apple, Inc. fits Oligopoly; a wheat farm fits Perfect Competition; a clothing company fits Monopolistic Competition; a local utility provider fits Monopoly; Coca-Cola fits Oligopoly.
More Information
Each firm aligns with a specific market structure based on its level of market control and competition.
Tips
Be sure to consider both the number of competitors and the level of differentiation when categorizing firms.
Sources
- Solved Market Structure and Market Power - Chegg - chegg.com
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