Question

In a major metropolitan area, there are many coffee shops, but one chain has gained a large market share because customers feel its coffee tastes better than its competitors'. There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who has passed inspections can acquire and maintain their license. Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market, because there are not enough customers to share among four or more airlines without each one experiencing substantially higher average costs. Consumers view all airlines as providing basically the same service and will shop around for the lowest price. The government has granted a patent to a drug company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
How many firms? One, Many or Few
Type of product? Unique, Anything, Standardized, or Differentiated
Market Value? Perfect competition, oligopoly, monopolistic competition or monopoly

Answer 1

Answer:

In a major metropolitan area, there are many coffee shops, but one chain has gained a large market share because customers feel its coffee tastes better than its competitors'.  - Differentiated product. Monopolistic competition.

The product is differentiated because it is not a perfect substitute for its competitors, since it is seen as being of higher quality than the rest.

The market structure is monopolistic competition because while there are many firms in the market, they do not sell prefect substitutes, and as a result, the market is sensitive to the rise of one of the companies.

There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who has passed inspections can acquire and maintain their license. - Standardized. Perfect Competition.

The pasta producers sell a product that is a perfect substitute, that is why restaurant buy whichever pasta is the cheapest.

The market value is reached in Perfect Competition because there are many firms in the market, the products are perfect substitutes, and few if any barriers to entry and exit.

Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market, because there are not enough customers to share among four or more airlines without each one experiencing substantially higher average costs. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.  - Standarized. Oligpology.

The product is standarized because it essentially has the same qualities, and consumers view all airlines as providing basically the same service.

The market structure is oligopoly because the market only has three firms, and no new firms can enter the market (barriers to entry).

The government has granted a patent to a drug company for an experimental AIDS drug. That company is the only firm permitted to sell the drug. - Unique. Monopoly.

The product is an unique type of drug, that is why it was granted a patent.

The market structure is a monopoly because only one firm sells a product that does not have any substitutes.