Chapter 13 - Market Structure

Which of the following is NOT an oligopolistic market in Hong Kong?

• Supermarket

• Radio broadcasting market

• Egg waffle market

• Textbook publishing market

Which of the following statements about a monopoly is correct?  

• A monopolist faces no competition.

• A monopolist supplies only one product which has no close substitutes.

• A monopolist must be regulated by the government.

• A monopolist is a price searcher.

The market for textbook retailing is NOT perfectly competitive because

• a monopolist dominates the market.

• entry barriers prohibit other sellers from entering the market.

• services provided by different sellers are heterogeneous.

• only sellers have perfect information on the prices of textbooks.

Which of the following statements about the theme park industry in Hong Kong is correct?

• Hong Kong Disneyland is a monopolist because its average cost of production drops when there are more tourists

• Hong Kong Disneyland guarantees a profit because it is protected by the government.

• Hong Kong Disneyland and Ocean Park Hong Kong have no competition with each other as tourists may go to both theme parks.

• Hong Kong Disneyland and Ocean Park Hong Kong are interdependent in their marketing strategies.

Based on the information in the above diagram, we can conclude that the market structure of online food delivery sector in China in 2017 could be regarded as_____________ because ___________.

• monopolistic competition ... market information about the food delivery services was imperfect

• monopolistic competition ... there were price and non-price competitions among the service providers

• oligopoly… service providers considered the reactions of other major providers in making decisions

• oligopoly… a few service providers had significantly larger market shares than others