1. (a)Name the market formor classification (pure competition, monopoly, monopolistic competition, oroligolopy.)under which each of the following most accurately fall, and

(b)why?(4 + 8 = 12)

a)an Idaho potato farm

b)the steel industry

c)Green Giant Sweet Peas

d)the car industr

2.Give an example of anegative externality and a positive externalitythat isnotlisted in your book, and that is true to own your life. (4)

3. (a)Based on what you have learned about markets inmonopolymarketsandmarkets inoligopoly, which of the twodo you believe ismore harmfulfor consumers and the economy, and

(b)why?(2 + 4 = 6))

4. Do you believeallmonopolies should be considered illegal? Give reasons for your answer. Please use your knowledge of the Sherman Anti-Trust Act, economies of scale, cost advantages,etc., when discussing the issue.(4)

5. (a) Many goods and services, such ashomeland security,air traffic control,national highways construction, disaster relief,etc., are exclusively provided by the government. In that sense, they are government produced, government-run monopolies.

If that is fair, then how can the government use antitrust laws to strike down private monopolies? (2)

Areallprivate monopolies necessarily evil, and should they never be allowed to exist? (2)