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2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).  

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).  

(A)Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.  

(A) Perfect competition- there is many buyers and sellers, perfect knowledge and mobility, and many substitutes.  

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(2) Perfectly Contestable Markets, because Eddie keeps his prices as low as possible due to the threat of competition.

(3)Monopoly, because it describes that there are no competitors to lower the price of the widget.

(3) Monopoly, because it describes that there are no competitors to lower the price of the widget.

5. What prevents a monopoly from increasing its prices without limitation?  

5. What prevents a monopoly from increasing its prices without limitation?