Question

LIST ./Look at the list to th the list to the right. In what type of market is each of the goods and rvices in the list sold? Explain your answers. opose that the restaurant industry is perfectly competitive. Joe's Diner is Jways packed in the evening but rarely has a customer at lunchtime. Why doesn't Joe's Diner close-temporarily shut down--at lunchtime? • Breakfast cereals • Cell phones • The only restaurant in a small town • Oranges • Air travel in a town serviced by ne airline

Answer 1

Q3 is answered below

3.

A) breakfast cereals: Monopolistic competition (as firms differentiate on the basis of different products offered for cereals)

B) Cell phones: Monopolistic competition (high product differentiation)

C) The only restaurant in a small town: Monopoly (single seller)

D) Oranges: Perfect competition (homogenous product, large number of buyers and sellers)

E Air travel in a town serviced by one airline: Monopoly (single seller)