Match the characteristics with their market structure:
(a) A single, homogeneous product with no close substitutes
(b) Few sellers with interdependent pricing and quantity decision
- A(a) Pure Competition, (b) Monopolistic Competition
- B(a) Pure Monopoly, (b) Monopolistic Competition
- C(a) Oligopoly, (b) Pure Competition
- D(a) Pure Monopoly, (b) Oligopoly
Solution & Step-by-step Explanation
* Characteristic (a) describes a Pure Monopoly, which features a single seller offering a unique product with no close substitutes.
Characteristic (b) describes an Oligopoly, which is characterized by a small number of large firms dominating the market, where each firm's decisions on pricing and output depend closely on the behavior of its competitors.
Characteristic (b) describes an Oligopoly, which is characterized by a small number of large firms dominating the market, where each firm's decisions on pricing and output depend closely on the behavior of its competitors.