Answer to Question #184989 in Microeconomics for James

Question

QUESTION 1

Perfect competition and monopoly are:

1. Virtually identical market structures.
2. Both strictly outlawed by the SEC.
3. At opposite ends of the competition spectrum.
4. At one end of the competition spectrum with oligopoly at the other extreme.
5. Both located somewhere between oligopoly and monopolistic competition on the competition spectrum.

QUESTION 2

Monopolistically competitive markets feature a large number of competing firms:

1. Each producing identical products.
2. But the products they sell are not identical.
3. But not as many firms as in an oligopoly.
4. But fewer firms than in a monopoly.
5. All of the above.

QUESTION 3

Most markets that consumers encounter at the retail level:

1. Cannot be described by a market structure.
2. Fall firmly within the realm of a monopoly.
3. Are perfectly competitive.
4. Are monopolistically competitive.
5. Are oligopolies. 

Answer 1

Question 1

Perfect competition and monopoly are at the opposite end of the competition spectrum.

Question 2

Monopolistically competitive markets feature a large number of competing firms but the products they sell are not identical.

Question 3

Most markets that consumers encounter at the retail level are oligopolies