Question

Utility and energy-producing companies in the US are monopolies.
Farmer markets are considered competitive markets.
explain in details

Answer 1

Utility and energy producing companies are working under the Monopoly set up. Monopoly in the utility producing sector has been created through requirement of huge investment. Thus small firms can not enter the utility and energy producing sector. Hence it is investment created Monopoly.

On other hand, agricultural market is characterized by the presence of many small firms and products are identical. Thus such market is called perfectly competitive market. Very small investment is required to enter the agricultural market. Thus over the long run all firms earn normal profits.