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I need some help with this question?


guyz....i need some help with this question...any help will be greatly appreciated..
1) Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.
a. wooden #2 pencils
b. bottled water
c. copper
d. local telephone service
e. peanut butter
f. lipstick

(a) and (c) are perfectly competitive: many small producers of a homogeneous good

(b), (e), and (f) are monopolistically competitive: many producers who can differentiate their products from the other firms in the market.

(d) This used to be a monopoly, but now it's probably more monopilistically competitive, since people can get phone service from cable tv providers, Voynage, as well as their local phone company.

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