Question

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.
Read the statements. Click and drag each item into the correct spot within the chart.
A. Automotive Industry
B. ACME Light and Power
C. Airline Industry
D. Soda Industry
E. Beet Industry
F. Cable Television Industry
G. Agricultural Commodities
H. Athletic Shoe Industry
1. Perfect Competition
2. Monopolistic Competition
3. Oligopoly
4. Monopoly

Answer 1

Answer:

A. Automotive Industry

3. Oligopoly

few sellers, many buyers

B. ACME Light and Power

4. Monopoly

Generally only one per city

C. Airline Industry

3. Oligopoly

high barriers to entry

D. Soda Industry

3. Oligopoly

Coke and Pepsi control most of the market

E. Beet Industry

1. Perfect Competition

many sellers, many buyers

F. Cable Television Industry

4. Monopoly

Generally only one per city, or at most 2

G. Agricultural Commodities

1. Perfect Competition

many sellers, many buyers

H. Athletic Shoe Industry

2. Monopolistic Competition

differentiated products