Question

Indicate which type of market can be characterized by the following features:

___________a. consumer choice of products

___________b. need for advertising

___________c. extraordinary profit even in the long-run

___________d. firm determine his own price

___________e. use of non-price competition

___________f. easy entry into the market

___________g. product sold maybe homogeneous or differentiated

___________i. firm has little power to control price

Answer 1

a) perfect competition

b) perfect competition, monopolistic competition

c) monopoly

d)monopoly

e)monopolistic competition

f) perfect competition

g) monopoly

i)monopolistic competition