Question

1.

Your local water department (probably the City of Cleveland Division of Water) provides "running" water service to your residence. The water department is best described as

	A.	Pure competition
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Pure monopoly

2.

The market for agricultural products (like Florida oranges) is best described as

	A.	Pure competition
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Pure monopoly

3.

Automobile manufacturing is best described as

	A.	Pure competition
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Pure monopoly

4.

Which of the following industry types has ONLY A SINGLE SELLER?

	A.	Pure competition
	B.	Monopolistic competition
	C.	Oligopoly
	D.	Pure monopoly

Answer 1

1. Pure monopoly

2. Pure competition. As there are many sellers and buyers in the market with homogeneous products, agricultural market is a competitive market

3. Oligopoly.. Automobile industry is an industry with few giant firms. Oligopoly is a market structure where few giant firms are involved in the market.

4. Pure monopoly. A monopoly is a market structure with single seller and many buyers.