Competitive Markets
Competitive & Noncompetitive Markets
Oligopoly / Monopoly
Monopoly / Antitrust Legislation
Sole Proprietorship / Partnership
100
Why do consumers benefit from a competitive market?
accurately reflected costs, a wide range of products, products that are fairly priced
100
To set their products apart from those of their competitors, sellers in a monopolistic market use product ____________________.
What is differentiation?
100
situation in which sellers aggressively undercut each other's prices in an attempt to gain market share
What is price war?
100
if the potential profits of a market are limited by location, this kind of monopoly tends to develop
What is a geographic monopoly?
100
advantages of this type of business organization include ease of start-up, full control of business decisions, and exclusive rights to profits
What is sole proprietorship?
200
Under perfect competition, products must be ______________________.
What is identical?
200
What are characteristics of a noncompetitive market?
fewer products, less choice, higher prices
200
When sellers secretly agree to set production levels or prices
What is collusion?
200
this kind of market structure has declined in numbers as people have become more mobile, and catalogs and delivery services have increased in use
What is a geographic monopoly?
200
Disadvantages of sole proprietorships include unlimited liability, sole responsibility, limited growth potential, and lack of ______________.
What is lack of longevity?
300
What sets price in a perfectly competitive market?
What are the forces of supply and demand?
300
This market structure is dominated by a few large sellers
What is an oligopoly?
300
situation in which companies openly organize a system of price setting and market sharing
What is cartel?
300
What kind of monopoly does the granting of patents encourage?
What is a technological monopoly?
300
in this type of business organization, two or more people enjoy equal-decision-making authority
What is general partnership?
400
Under perfect competition, buyers choose products on the basis of ____________.
What is price?
400
In this market structure, there are only a few sellers, sellers cannot enter the market easily, and sellers offer identical or similar products
What is an oligopoly?
400
if competition in inconvenient and impractical, what kind of market structure tends to develop?
What is a natural monopoly?
400
This kind of monopoly often provides basic necessities, such as public utilities
What is a government monopoly?
400
In this type of partnership, some partners play a relatively inactive role in making business decisions
What is limited partnership?
500
What is one key difference between perfect competition and monopolistic competition?
The products are different rather than identical
500
How might oligopolies control prices?
through nonprice competition, interdependent pricing, collusions, and cartels
500
this type of monopoly tends to develop because of economies of scale
What is a natural monopoly?
500
This was enacted in the late 1800's to monitor and regulate big business, prevent and dismantle monopolies, and restrict laissez-faire
What is antitrust legislation?
500
Advantages of partnerships include ease of start-up, specialization, shared decision making, and ____________________________.
What are shared business losses?
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