Question

What are one example of a monopolistically competitive firm, oligopoly, and monopoly in your local area? In your example, please relate to the market characteristics of each of the market structures?

Answer 1

a) Monopolistically competitive firm, an example of it is A coffee shop. There are many such shops all selling a differentiated goods that are close substitute of each other. All have some control over the price that makes it monopolistic competitive.

b) Oligopoly = Airline services, here, the goods are very much the same =, it is differentiated by the advertisement and there are only a few large sellers in the market catering to the whole market.

c) Monopoly = US railway. There is only a single service provider and no close substitute of the railway services.