Question

culminating activity: identify the correct market structures
instructions: read the scenarios below, then drag the terms below to the blank space that best represents the scenario.
oligopoly monopoly monopolistic competition pure competition
scenario characteristic

1. indigo shanty is a local restaurant that produces caribbean style food. they compete with many other restaurants, both local \mom and pop shop\ restaurants and corporate franchises.
2. alabama power is the only distributor of electricity and power in alabama. if you need to power your home, they are the only supplier of electricity.
3. uncle dons local market provides fresh food and locally grown vegetables. don uses provides his product to the people in his town. there are many other farmers markets in the area that also sell the same product that don sells.
4. coastal georgia athletics cheer and tumbling is a competitive cheer gym in town. they are one of only two competitive cheer gyms in the region

Explanation:

1. For Indigo Shanty: Monopolistic Competition - Many firms, differentiated products (unique Caribbean food among various restaurants).
2. For Alabama Power: Monopoly - Single seller (only electricity distributor in Alabama).
3. For Uncle Don's Local Market: Pure Competition - Many firms, homogeneous products (locally grown veggies, many similar markets).
4. For Coastal Georgia Athletics Cheer: Oligopoly - Few firms (only two competitive cheer gyms in region).

Answer:

1. Monopolistic Competition
2. Monopoly
3. Pure Competition
4. Oligopoly