Write the correct market structure beside each features. A. State one example for each of the following types of market structures. i. Monopoly ii. Oligopoly B. Name the market that has only one buyer and many sellers.

Question 5:

• Features: Differentiated products, relatively small number of firms in the industry that dominate the market and business in the market earn super profits in the long run.

  • Types of Market: Oligopoly

• Features: Large number of buyers and sellers, products are homogenous and free entry and exit in the industry.

  • Types of Market: Perfect Competition

• Features: Two sellers, entry into the market is restricted and the seller has all control over prices.

  • Types of Market: Duopoly (a specific type of Oligopoly)

Question 6:

• A. State one example for each of the following types of market structures.

  • i. Monopoly: Electricity supply company in a specific region (e.g., Eskom in South Africa)
  • ii. Oligopoly: Telecommunications industry (e.g., Vodacom, MTN, Cell C)

• B. Name the market that has only one buyer and many sellers.

  • Monopsony