Question

In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than its competitors'. many differentiated monopolistic competition there are dozens of pasta producers that sell pasta to hundreds of italian restaurants nationwide. the restaurant owners buy from the cheapest pasta producer they can. while pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who passed inspections can acquire and maintain their license. only three airlines fly from san francisco to medford, oregon. no new airline will enter this market, because there are not enough customers to share among four or more airlines without each one experiencing substantially higher average costs. consumers view all airlines as providing basically the same service and will shop around for the lowest price. a publishing company owns the u.s. copyright to a popular series of books. it is the only company with the legal right to publish these books in the united states.

Answer 1

Answer:

Scenario 1- In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than its competitors'.

Market structure- Monopolistic competition

Number of Firms- Few

Type of Product- Differentiated

Scenario 2 - Many differentiated monopolistic competition there are dozens of pasta producers that sell pasta to hundreds of italian restaurants nationwide. the restaurant owners buy from the cheapest pasta producer they can.

Market structure- Competitive

Number of Firms- Many

Type of Product- Identical

Scenario 3- Only three airlines fly from san francisco to medford, oregon. no new airline will enter this market, because there are not enough customers to share among four or more airlines without each one experiencing substantially higher average costs. consumers view all airlines as providing basically the same service and will shop around for the lowest price.

Market structure- Oligopoly

Number of Firms- Few Firms

Type of Product- Identical

Scenario 4- A publishing company owns the u.s. copyright to a popular series of books. it is the only company with the legal right to publish these books in the united states

Market structure- Monopoly

Number of Firms- Single Firm

Type of Product- Unique

Explanation:

Perfect competition- Under this type of market structure there are too many firms selling identical products. There is no restriction on entry and exit and individual firms have no control over the price of the good.

Monopoly- It is a market structure in which there is only a single seller of the good. A monopoly has full control over its price. It can be created by copyrights, patents, etc.

Oligopoly- Under this market structure a few firms sell identical products to the market. The entry and exit is restricted in this market.

Monopolistic competition- This is a market structure in which a few firms sell a differentiated good. Entry and exit is also restricted in this market structure.