1)Can you suggest an example (or examples) of a market that you think resembles monopolistic competition or oligopoly?

2) ABC Square in downtown Newark, the city charges skaters $3 to use the rink. I.C. Snow, a local community activist, argues that this fee is unfair. She claims that the rink is a public good - it is operated by the city's Parks and Recreation department, and the construction of the ABC Square area (and the rink itself) was financed with taxpayer money. The director of the Parks and Recreation department has asked you to response to I.C. Snow's argument. How will you respond? Is her claim that the rink is a public good valid? Why or why not? Does it make sense to charge a fee for using the rink?

1)Monopolistic competition means there are many buyers and sellers of a product that is differentiated. Branded products usually fall into this category. Healthy and beauty products would be an example. There are literally hundreds of competing brands - from Almay to Sephora and everything in between. These brands compete for sales and customers in the lucrative beauty products market. Even within the specialty of organic skincare, there are more than 40 brands - too many to be an oligopoly.

2)A public good in economics is defined as a good that is non-excludable and non-rivalrous. In this case, the ice rink is rivalrous as after a certain amount of people enter the rink, the ability to use it decreases just like traffic. Thus, the $3 fee is not being used to raise revenue but to make sure there isn't an over-consumption of the rink. There is essentially a shortage of ice rink space at a price of $0 and thus the city closes the shortage by raising the price. Thus, if this is the reason for the fee than it is perfectly understandable.