Whether each of the following is a characteristic of perfect competition , monopolistic competition , oligopoly, and/or monopoly : A large number of sellers Product is a commodity Advertising by firms Barriers to entry Firms are price makers Concept Introduction : Perfect Competition : Perfect Competition describes a market structure in which the number of buyers and sellers is very large, and the competition among sellers is at its greatest possible level. Monopolistic Competition : Monopolistic competition is a type of competition where producers offer products that are differentiated from one another (e.g. by quality). Oligopoly : Oligopoly refers to a market which is dominated by a small number of large sellers (oligopolists). Oligopoly has its own market structure. Monopoly : Monopoly refers to a market structure where there is a single seller who is engaged in selling a unique product in the market.

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Answer 1

Question

Chapter 10, Problem 12P

To determine

Whether each of the following is a characteristic of perfect competition, monopolistic competition, oligopoly, and/or monopoly:

A large number of sellers

Product is a commodity

Advertising by firms

Barriers to entry

Firms are price makers

Concept Introduction:

Perfect Competition: Perfect Competition describes a market structure in which the number of buyers and sellers is very large, and the competition among sellers is at its greatest possible level.

Monopolistic Competition: Monopolistic competition is a type of competition where producers offer products that are differentiated from one another (e.g. by quality).

Oligopoly: Oligopoly refers to a market which is dominated by a small number of large sellers (oligopolists). Oligopoly has its own market structure.

Monopoly: Monopoly refers to a market structure where there is a single seller who is engaged in selling a unique product in the market.

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