PERFECT COMPETITION ILLEGAL MONOPOLY OLIGOPOLY CARTEL AND MO

PERFECT COMPETITION, ILLEGAL MONOPOLY, OLIGOPOLY, CARTEL AND MONOPOLISTIC COMPETITION. For each statement (19) through (25) you write the name of the market form that fits the statement:   23. This market from has firms with very high start up for marketing and advertising

24. This market from will only do well in the long run, if market demand is INELASTIC.

25. This market firm has firm will excess capacity in the long run

Solution

23) Monopolistic and oligopoly market forms, because

Perfect competitors never advertise and monopolies advertise relatively little

But advertising is almost always found under monopolistic competition and very often in oligopoly as they produce differentiated products

25) In long-run, a monopolistic competitor, monopoly and oligopoly will operate with excess capacity