Question

Please select the type of market structure for the following good or service:

Private Universities in Houston

		Perfect Competition
		Monopolistic Competition
		Oligopoly
		Monopoly

Answer 1

Answer : The correct option is b.

Because in case of private universities the president of universities has the controling power to operate the college systems and students admission fees, exam fees and etc. which is the characteristic of monopoly. As many private universities are existed in Houston there occurs competition between private universities . In monopolistic competition firms has the market controling power and also there exist competition between firms as there are many firms in the market. So, in Houston the market structure for private universities is monopolistic competition.