Consider the markets for tap water, bottled water, cola, and beer. Assume there is only one provider of tap water, bottled water manufacturers use advertising to differentiate their products, cola producers engage in strategic pricing behavior, and the beer market is largely controlled by only a few firms. Classify the market for each of the following drinks as either monopoly, oligopoly, monopolistic competition, or perfect competition. Monopoly Oligopoly Monopolistic Competition Perfect Competition Tap water Bottled water Cola Beer
Consider the markets for tap water, bottled water, cola, and beer. Assume there is only one provider of tap water, bottled water manufacturers use advertising to differentiate their products, cola producers engage in strategic pricing behavior, and the beer market is largely controlled by only a few firms. Classify the market for each of the following drinks as either monopoly, oligopoly, monopolistic competition, or perfect competition. Monopoly Oligopoly Monopolistic Competition Perfect Competition Tap water Bottled water Cola Beer
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the markets for tap water, bottled water, cola, and beer. Assume there is only one provider of tap water, bottled water manufacturers use advertising to differentiate their products, cola producers engage in strategic pricing behavior, and the beer market is largely controlled by only a few firms.
Classify the market for each of the following drinks as either monopoly , oligopoly, monopolistic competition , or perfect competition .
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Monopoly
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Oligopoly
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Monopolistic Competition
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Perfect Competition
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| Tap water |
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| Bottled water |
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| Cola |
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| Beer |
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