Question

Match the following market structures with their properties.

• A. Single good
• B. Identical/Different
• C. Identical Products
• D. Differentiated Goods

Answer 1

(i) In a monopoly, there is a single, undifferentiated product.

(ii) In a monopolistic competition, firms sell differentitated products that are close substitutes.

(iii) In a perfectly comptetitive market, all firms sell identical products.

(iv) In an oligopoly, firms can sell either identical or differentiated products.