Essay : Identify a particular industry that meets the criteria for Pure Competition or Monopoly.

Identify a particular industry (non-government) that meets the criteria for Pure Competition or Monopoly. Explain clearly why you think the industry is in Pure Competition or is a Monopoly and evaluate it from perspectives of efficiency and equity. You may post to both categories, but are required to only select one. Keep in mind there are four market structures and we study Monopolistic Competition and Oligopoly next week. Identify the market characteristics, productive efficiency, allocative efficiency, and equity in the particular industry that you selected.

SAMPLE SOLUTION

Pure Competition Industry
A purely competitive industry is one where many competing sellers deal in identical services or goods (Barkley and Paul 86). In reality, it is tough to settle on an industry that is purely competitive because each firm selling a product or service is thought to have a bit of monopoly in the industry. One industry that is believed to be closest to pure competition and that will be addressed in the paper is the farming industry in the United States. Farming industry satisfies most of the criteria for pure competition (Barkley and Paul 86). Pure competition market characteristics are the sale of identical services or products, availability of many buyers and sellers in the market, ease of new…