These are the conditions that allow monopolies to exist.
What are barriers to entry?
100
These are the expenses a firm must pay before it can begin to produce and sell goods.
What are start up costs?
100
This is an agreement among firms to charge one price for the same good.
What is price fixing?
100
A real estate agent would be most likely to highlight this type of nonprice competition.
What is location?
100
These are policies that encourage competition in the marketplace.
What are anti-trust laws?
200
This is a market that runs most efficiently when one large firm supplies all of the output.
What is a natural monopoly?
200
Examples are produce items, petroleum, and copy paper.
What are commodities?
200
This is an agreement among firms to divide the market, set prices, or limit production.
What is collusion?
200
This is the amount of control a monopolistically competitive firm has over price.
What is slight control?
200
In 1997, this firm was accused of using a monopoly in operating systems to control the market for desktop software.
What is Microsoft?
300
This is the right to sell a good or service within an exclusive market.
What is a franchise?
300
This means that buyers and sellers have all the information they need about this product in order to make informed decisions.
What is perfect information?
300
This is a series of competitive price cuts that lowers the market price below the cost of production.
What is a price war?
300
These are some of the ways monopolistically competitive firms set themselves apart from their competitors. They include service level and physical characteristics.
What is nonprice competition?
300
The government regulates this type of market structure in order to avoid price fixing, collusion, and cartels.
What is an oligopoly?
400
These are factors that cause a producer's average cost per unit to fall as output rises.
What are economies of scale?
400
This is the ability of businesses to begin or end production and sales according to profitability.
What is ease of entry and exit?
400
This is the name for a formal organization of producers that agree to coordinate prices and production.
What is a cartel?
400
Monopolistically competitive firms won't have much of this because of fierce competition from other sellers and entry of new sellers if there is much of this.
What is profit?
400
This is the removal of some government controls over a market.
What is deregulation?
500
This is where a monopolist will set output and price.
What is where MR=MC for output, and at the demand curve for price?
500
Because sellers have no influence over the price in this market structure they are called this.
What are price takers?
500
This is a long-surviving cartel in the petroleum industry and the approximate percentage of the market it controls.
What is OPEC, and 70%?
500
This is making a product similar, but not identical to other products in the market.
What is differentiation?
500
This is the combination of two or more companies into a single firm and the group able to approve or deny the action.