Check Your Understanding

1. Question

   In each of the following situations, what type of market structure do you think the industry represents?

   1. There are three producers of aluminum in the world, a good sold in many places.

      oligopoly

   2. There are thousands of farms that produce indistinguishable soybeans, a commodity sold to thousands of buyers.

      perfect competition

   3. Many designers sell high-fashion clothes. Each designer has a distinctive style and a somewhat loyal clientele.

      monopolistic competition

   4. A small town in the middle of Alaska has one bicycle shop.

      monopoly