Economics 4.6 - Market Structures: Perfect Competition

The ice cream market is an example of _____ because it has many sellers who offer differentiated products.

monopolistic competition

The car market is an example of _____ because it has few sellers who offer differentiated products.

oligopoly

A monopoly has _____ seller(s), but perfect competition has _____ seller(s).

one, many

Select all that apply. Select the items that describe perfect competition.

~cannot influence price ~many sellers ~identical products

Select all that apply. Select the kinds of market structures in which sellers have some (including complete) control over price.

~monopolistic competition ~oligopoly ~monopoly

In two to three sentences, explain the similarities between monopolistic competition and oligopoly.

​The similarities between oligopoly and monopoly competition are: They both exhibit imperfect competition in that oligopoly has few sellers while monopoly has many sellers. Firms have some level of control over prices in both competitive structures. The monopoly firm is the industry.