Question

Identify the basic characteristics of each of the following:
1) Monopoly
2) Oligopoly
3) Monopolistic competition
4) Pure Competition
@djcool31

Answer 1

1.) monopoly: 1. only one person or enterprise supplies a specific product 2. there are no viable substitute products on the marked 3. Because of the lack of competition, the monopolist is able to control prices.

Answer 2

2.) oligopoly: (1) an industry dominated by a small number of large firms, (2) firms sell either identical or differentiated products, and (3) the industry has significant barriers to entry.

Answer 3

3.) monopolistic competition: 1. Existence of large number of firms, 2. Product differentiations, 3. Some influence over the price, 4. Absence of firm's interdependence, 5. Non-price competition,6. Freedom of entry and exit

Answer 4

4.) pure competition: large number of buyers and sellers of a product
all products of different firms are homogenious, identical in every sense
all info about qualities of products, prices, location of stores, taxes, etc. is freely available to everyone, market entry/exit are unrestricted, no market entry or exit barriers exist