Pure Competition: A very huge number of firms; uniform products; no rent controls: price takers; no entry barriers; no un-price competition.
Oligopoly: Few companies; uniform or distinguished goods; price controls constricted by mutual interdependence: a great deal of anti-price competition, especially product difference.
In each case, Oligopoly and pure competition differs.
- Supermarkets in hometown - Oligopoly is correct; Supermarkets in every area are few in the total amount.
- Steel industry - Oligopoly is correct; Companies are few; their goods are somewhat standardized.
- Kansas wheat farm - Pure Competition is correct; there is no price control; there is no non-price competition.
- Commercial bank - Oligopoly is correct; the facilities are as distinct as the bank can help them look.
- Automobile industry - Oligopoly is correct; Imports made the industry more competitive in the past two years, dramatically increasing American automakers ' market power.
Answer:
A. Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant.
Explanation:
When Wassily Leontief tested the predictions of the Heckscher-Ohlin theory, he found that in 1947 the United States was exporting relatively labor-intensive goods and importing relatively capital-intensive goods. This finding: "Contradicted the Heckscher-Ohlin theory as the United States was relatively capital-abundant."
This is because Heckscher-Ohlin theory states that countries usually export commodities, and resources they have in excess, while in return, they import the commodities and resources they need.
However, given that the United States is a country that was relatively capital-abundant, Wassily Leontief's finding is considered to be a contradiction.