Question

A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description. 1. Automotive Industry: In this industry, there are a few sellers that tend to dominate the market.

Answer 1

Question Completion:

Automotive Industry

ACME Light and Power

Airline Industry

Soda Industry

Beet Industry

Cable Television Industry

Agricultural Commodities

Athletic Shoe Industry

Answer:

Industry                                Type of Competition

Automotive Industry             Oligopoly  

ACME Light and Power        Monopoly

Airline Industry                      Oligopoly

Soda Industry                        Monopolistic Competition

Beet Industry                         Perfect Competition

Cable Television Industry     Monopoly

Agricultural Commodities     Perfect Competition

Athletic Shoe Industry           Monopolistic Competition

Explanation:

a) Data:

Four degrees of competition within a free-market system. These include:

Perfect competition = many sellers of goods and services that are identical to one another.

Monopolistic competition = many firms who are selling non-identical goods and services.

Oligopoly = few sellers who do not dominate others but have influence.

Monopoly = one seller of a good or service.