Question

1. Briefly state the basic characteristic of pure competition, monopoly, monoplistic competition, and olgolopy. Under which of these market classification does each of the following most accurately fit?

A) a Kansas wheat farm

B) the steel industry

C) Jolly Green Giant Peas

D) the automotive industry

2. Give an example of a negative externality and a positive externality that is not listed in your book.

Answer 1

A)- Canas Wheat farm has pure competition. because many sellers and many buyers.

B)-The steel industry has oligopoly market example because some sellers have large share in the market.

C)- Jolly Green Giant Peas has monoplistic competition.

D)- The automotive industry has monopoly market because it has higher fixed cost.

2)- Alcoholic person has negative Externality because they create family problem, abuse etc.

Education has Positive Externality. They create positve benifit for society and reduces the crime activity.