Economics Homework Nine Answers - Student Seventeen
1) An example of an imperfect oligopoly is the pizza industry. All pizzas are not identical, however the industry as a whole is an oligopoly.
3) a. imperfect oligopoly; b. monopolistic enviornment; c. cartel or monopoly.
4) Monopolies can be started by an individual (s) devoting their life to work and reaping the benefits from that work. Another, less noble way is through government intervention. When a government becomes too big and powerful, the people in control tend to press their own agendas with little resistance from the public; if that agenda includes creating a monopoly ( eg. The Postal Service ), then there is not much anyone can do about it.
5) The free market prevents monopolies from increasing prices without limitation. Actually the government helps with that as well. Laws may be introduced to break up the monopoly or limit their control of a particular industry to a certain percent.