Match industry to market structure

Exercise and reference answers

Matching pairs

1. Left

   Wheat and corn

   Right

   Perfect competition, price set by the market

2. Left

   Gas and water

   Right

   Pure monopoly, a single seller in the market

3. Left

   Specialty clothing

   Right

   Monopolistic competition, entry is easy

4. Left

   Steel and airlines

   Right

   Oligopoly, a few firms make most output

Instructions

Tap an industry, then tap the market structure it belongs to.

Explanation