Economics-Monopolies

What better describes an oligopoly?

• One buyer, several producers

• One producer, many buyers

• Few producers, many buyers

• few buyers, many producers

What better describes a monopoly?

• One buyer, several producers

• One producer, many buyers

• Few producers, many buyers

• few buyers, many producers

What are the types of monopolies? (Mark all that apply)

• Natural monopoly

• Geographic monopoly

• Technological monopoly

• Government monopoly

• Monopsony

Two companies: AppleB and ITT-Com are the only 2 providers of I-phones in a country. They both agree to sell the same old I-Phone models and not to bring the newest to the market. This is an example of…

Long ago, in Guatemala there were only 2 poultry (chicken) farming industries: Avícola Villa Lobos and Frisa. These 2 industries decided to sell the same exact chicken products at the same price. This is an example of:

What are the reasons why markets fail? (Mark all that apply)

• Not enough competition

• Too few public goods such as highways,

• Abundance of public information

• Subsidies

Creating agencies that protect consumers, is a way government can control monopolies.

• True

• False

In Wandaland (fictional name) there is only one company that provides electricity to the population. This company charges high prices, cuts the service very often, and denies service to some customers. The government does nothing about it because they believe they should not interfere in economic issues. This is an example of

Pure competition markets do not exit in real life, only in theory

• True

• False

Coca-Cola Company and PepsiCo both same carbonated cola drinks. Coca-Cola claims that its product has a “secret formula.” This is an example of…

• Non pricecompetition

• Product differentiation

• Monopolistic competition

• Perfect competition