What are the four conditions of Monopolistic Competition?
Many Firms, Few Artificial barriers to entry, Slight control over price, Differentiated products.
100
Markets dominated by a few large firms tend to have what kind of prices and output?
Higher prices and lower output
100
When the company has the ability to change prices and output like a monopolist.
What is market power.
100
The trait that all monopolies have in common.
What is a single seller in a market.
100
Division of customers into groups based on how much they will pay for a good.
What is price discrimination.
200
What's one form of nonprice competition?
Physical characteristics, the simplest way for a firm to distinguish its products is to offer a new size, shape, color, or taste.
200
When did Congress pass laws to deregulate industries?
1970s and 1980s
200
A way to attract consumers through style, service, or location but not lower price.
What is nonprice competition.
200
Why is a franchise considered a government monopoly?
Because it is the right to sell a good/service within an exclusive market.
200
Why is price discrimination rare in highly competitive markets?
Because they must have some market power/ some control over prices.
300
What does differentiation enable a monopolistically competitive seller to do?
Profit from the differences between his or her products and competitors products.
300
What U.S. President deregulated the Airline Industry, and when?
President Carter, 1978
300
A market structure in which a few large firms dominate a market.
What is an oligopoly.
300
What can destroy a natural monopoly?
What is technology and change.
300
What is a targeted discount?
A form of price discrimination; identifying some customers who are unwilling to pay full price and give them a discount, and then also identify who need the item the most and charge more for the item.
400
When many companies compete in an open market to sell products that are similar but not identical is know as what?
Monopolistic competition
400
During the 1990s, several states deregulated their electricity markets to allow for what?
Competing companies to produce and sell energy to homeowners.
400
A series of competitive price cuts that lowers the market price below the cost of production.
What is price war.
400
Something that gives a company exclusive rights to sell a new good or service for a specific period of time.
What is a patent.
400
When there is an agreement among firms to charge one price for the same good.
What is price fixing.
500
What is a major difference between perfect and monopolistic competition?
Monopolistic competitive firms sell goods that are similar enough to be substituted for one another, but not identical.
500
=When was the Sherman Antitrust Act passed in Congress?
1890.
500
A formal organization of producers that agree to coordinate prices and production.
What is a cartel.
500
When a monopoly has to choose between output and price in order to maximize profits.
What is a monopolists dilemma.
500
When firms use price discrimination to run other firms out of business. (which is illegal)