Question

matching 5 points
match each market structure with the correct example.

monopoly
monopolistic competition
natural monopoly
pure competition
oligopoly

pepsico
agriculture
electric company
microsoft
abercrombie

Explanation:

Identify the market structures

We need to match five market structures with their corresponding real-world examples:

• Monopoly: A market with a single seller of a unique product with no close substitutes.
• Monopolistic competition: A market with many sellers offering differentiated products.
• Natural monopoly: An industry where high infrastructure costs make a single supplier most efficient.
• Pure competition: A market with many sellers offering identical agricultural or commodity products.
• Oligopoly: A market dominated by a small number of large, powerful firms.

Analyze the given examples

Let's evaluate each example from the list:

• Pepsico: Operates in a market dominated by a few giant firms (like Coca-Cola), representing an oligopoly.
• agriculture: Features many small producers selling identical commodities (like wheat or corn), representing pure competition.
• electric company: Requires massive infrastructure (power grids), making a single utility provider the most efficient setup, representing a natural monopoly.
• Microsoft: Historically held a near-total dominant share in operating systems (Windows), representing a monopoly.
• Abercrombie: One of many clothing brands selling similar but highly differentiated products, representing monopolistic competition.

Match structures to examples

Now we align each market structure with its correct example:

• monopoly matches with Microsoft.
• monopolistic competition matches with Abercrombie.
• natural monopoly matches with electric company.
• pure competition matches with agriculture.
• oligopoly matches with Pepsico.

Answer:

Market Structure	Example
monopolistic competition	Abercrombie
natural monopoly	electric company
pure competition	agriculture
oligopoly	Pepsico