guyz….i need some help with this question…any help will be greatly appreciated..
1) Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.
a. wooden #2 pencils
b. bottled water
c. copper
d. local telephone service
e. peanut butter
f. lipstick
(a) and (c) are perfectly competitive: many small producers of a homogeneous good
(b), (e), and (f) are monopolistically competitive: many producers who can differentiate their products from the other firms in the market.
(d) This used to be a monopoly, but now it’s probably more monopilistically competitive, since people can get phone service from cable tv providers, Voynage, as well as their local phone company.
January 21st, 2010 at 6:29 pm
(a) and (c) are perfectly competitive: many small producers of a homogeneous good
(b), (e), and (f) are monopolistically competitive: many producers who can differentiate their products from the other firms in the market.
(d) This used to be a monopoly, but now it’s probably more monopilistically competitive, since people can get phone service from cable tv providers, Voynage, as well as their local phone company.
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