Economic Theories - Market Structures

5 important questions on Economic Theories - Market Structures

What are some examples of industries that represent perfect competition?

Examples of industries with perfect competition include agricultural markets for commodities such as wheat or corn.

What are some examples of industries that represent monopoly?

Examples of industries with monopoly power include public utilities like water or electricity providers in certain regions.

What are some examples of industries that represent monopolistic competition?

Examples of industries with monopolistic competition include the fast food industry, where multiple firms offer similar but differentiated products.
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What are some examples of industries that represent oligopoly?

Examples of industries with oligopoly include the automobile industry, where a few large companies dominate the market.

What are the potential drawbacks of monopoly power?

Monopoly power can lead to higher prices, lower product quality, and a lack of innovation, as there is no competition to drive efficiency and improvement.

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