Question

Question 1 1 pts Cribbs and Babbles are the only 2 firms in the reusable baby diaper industry. Each company represents about 50% of the market share for the entire industry. There are no other competitors. This is an example of what? Imperfect competition Monopolistic competition O Oligopoly Monopoly Question 2 1 pts There are 16 food vendors who are set up outside of a music festival. This is an example of what? Perfect competition O Monopolistic competition O Oligopoly Monopoly

Answer 1

1.Monopoly is a market structure type in which there is only single seller

In monopolistic competition and imperfect competition there are large number of sellers

But according to given question there are only two firms in the market

So it will come under the oligopoly industry

Oligopoly market is a market structure type in which

• There are few large sellers with a large number of buyers in the market
• There are barriers to entry and exit in this market
• Long term economic profit is positive

So the correct answer here is option C

2.Since in a Monopoly as we have already talked about there is only single seller

In oligopoly there are only few large sellers

so both the option will rule out

Now there are sixteen food vendors so there are a large number of sellers in the market and all of them are serving the food but they are differentiated in terms of food quality, taste, service which is a characteristic of monopolistic competition

So the correct answer here is option B