Market Structures Review

Oligopoly

Perfect Competition

Monopolistic competition

Monopoly

answer optionOn one street, you can find five different coffee shops. Each sells coffee but they all have unique flavors and promotions. Customers choose based on style and taste, not just price. 

A single company supplies water to the entire city. No other company can legally operate water pipelines. 

In the soda market, two brands dominate grocery shelves. Both spend money on advertising and engage in price wars. This makes it hard for smaller drink companies to compete. 

A farmer brings potatoes to a farmers market. There are multiple other sellers of identical potatoes. No seller can raise their price because buyers can easily switch to someone else.