For each of the following scenarios, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure.
|
Scenario |
Number of Firms |
Type of Product |
Entry |
Market Model |
|
Many small shops sell different styles of sweaters. Some stores sell higher-quality and more expensive sweaters then other stores. |
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Hundreds of high school students who require tutoring in algebra choose among dozens of tutoring companies offering similar services. |
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Four Internet providers offer similar services to almost everyone in the city. Any new company would have to engage in a price war with the existing companies. |
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Only one pharmaceutical company has a government patent to sell an experimental drug. options: 1. few/many/one 2. differtiated/standard/unique/anything 3. impossible/challenging/easy 4. oligopoly/monopoly/price-taker/price-searcher |
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