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In which type of competition (pure, monopolistic, oligopoly or monopoly) would each of the following businesses be likely to engage? Why? Explain your answers

Economics Dec 03, 2020
  1. In which type of competition (pure, monopolistic, oligopoly or monopoly) would each of the following businesses be likely to engage? Why? Explain your answers. (30 points)

a.   Turkish airlines  

b.   Small CrossFit gym

c.   A large farm whose major crop is wheat

d.  Apple Corporation

e.   Your local Starbucks

Expert Solution

(a). Turkish Airlines:- monopolistic competition

As there are many substitutes of turkish airlines, ex- IAG, United Airlines, Air France KLM, Lufthansa etc.

But entry is not easy, as it costs a lot and take lot of process to start.

(b). Small Cross fit Gym:- monopolistic market

And reason is same as above.

(c). A large farm whose major crop is wheat:- purecompetition

A large farm can be anywhere and anyone can produce wheat on it. So, entry and exit of the market is easy. And there are many producers with many buyers.

(d). Apple Corporation:- Oligopoly

As android is only substitute of ios, So it comes under oligopoly.

(e). Your local Starbucks:- monopolistic competition

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