BUS6600 HW 2B Free-Market Competition ...
A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly.
One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do.
Select the degree of competition that best describes each listed industry or business based on the description.
Automotive Industry: In this industry, there are a few sellers that tend to dominate the market.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Beef Industry: There are many different suppliers of these products, which prevents any one of them from setting prices.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Soda Industry: In this industry the products are very similar, although consumers perceive them as being very different.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Agricultural Commodities: There are many different growers of these products, which prevents any one of them from setting prices.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Airline Industry: In this industry, there are a few sellers that tend to dominate the market.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Athletic Shoe Industry: In this industry the products are very similar, although consumers perceive them as being very different.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
ACME Light and Power: Through special legislation, this supplier is the sole provider of electricity to its local municipalities.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
Cable Television Industry: In smaller markets, one company is the sole provider of cable television service to consumers in local municipalities.
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
