Sorry I am trying to understand these concepts for a class M

Sorry, I am trying to understand these concepts for a class..

My sister has a small business where she makes small gift sets for babies that have socks and caps.  The cost for producing socks is $10.25 and the cost for producing caps is $7.25 - thinking z=f(x,y), then the objective function should read: z=10.25x + 7.25y  ….  The final cost for these two items is $17.50. ... yes?

The final cost of these gift sets can vary depending on the holiday season. The materials for Halloween, Thanksgiving and Christmas themes cost more, but the demand is also more. She is able to buy more materials up to a 15% more each season.. are these the conditions you were asking for?

Thanks!

Solution

Ans-

identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure.

Scenario - 1) In a major metrapolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than its competitors

Number of firms?
a) one
b) few
c) many

Type of product?
a) unique
b) identical
c) differentiated
d) anything

Market model?
a) monopoly
b) monopolistic competition
c) perfect competition
d) oligopoly

Scenario 2) In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. Consumers don\'t care which cab company they take - if they decide it\'s worth taking a cab, they flag down the nearest one.

Number of firms?
a) Many
b) One
c) Few

Type of product?
a) Indentical
b) unique
c) anything
d) differentiated

market model?
a) monopolistic competition
b) oligopoly
c) perfect competition
d) monopoly

Scenario 3 - The government has granted the U.S. Postal Service the exclusive right to deliver mail
Number of firms?
a) One
b) few
c) many

type of product?
a) anything
b) differentiated
c) identical
d) unique

Market model?
a) perfect competition
b) monopoly
c) oligopoly
d) monopolistic competition

Scenario 4 - Dozens of companies produce plain white socks. Consumers regard plain white socks as identical, and don\'t care about who sells them their socks. The technology for producing socks is widely known, and any reputable person who wanted to start a sock manufactoring business could obtain a loan from a bank to buy the necessary machinery.

Number of firms?
a) few
b) one
c) many