Perfect Competition
Monopoly
Oligopoly
Monopolistic Competition
Misc
100
Does perfect competition exist?
No
100
What is a monopoly?
A market situation where there is only one seller of a particular economic product that has no close substitutes.
100
What is a oligopoly?
What is only a few companies dominate the market
100
What are the 2 ways that products can compete?
Product differentiation and non-price competition
100
This occurs when two or more companies decide to become one company.
A merger
200
Give an example of something similar to perfect competition. (i.e. Name the product that would be sold)
(Apples, Salt, Corn, Beef)
200
What are four types of monopolies?
Natural, Geographic, Government, and Technological
200
What is an example of an oligopoly?
What is Coke, Pepsi, Kellogg, McDonalds, Wendy’s
200
What is an example of non-price competition?
A situation where the producer differentiates themselves using something other than price
200
Why does the government monitor mergers between companies?
To ensure that a monopoly doesn't form
300
When perfect competition is present, how do buyers decide what product to purchase?
Price
300
What is an example of a Geographic Monopoly?
When business or firm is the only option available in a geographic location
300
What is interdependent behavior?
When one firm does something, others usually follow
300
Give an example of product differentiation.
When a company makes an effort to make their product appear superior (real or perceived)
300
Sirius Radio and XM radio are now one company. What kind of merger occurred?
A Horizontal Merger
400
What is the difference between perfect competition and monopolistic competition?
There is not a standardized product
400
Energy is an example of which type of monopoly?
Natural
400
What happens when Oligopolies engage in a price war?
The price becomes unusually low
400
Crispex Cereal and Crispy Hexagon are an example of what type of competition? the answer is not monopolistic competition
Non-price competition
400
If diversification is the goal of a merger, which type of merger is occurring?
Conglomerate merger
500
What factors have to be present for perfect competition to exist? Name 3
1. Large number of Buyers and Sellers 2. Products are Identical 3. Buyer/ Seller is informed 4.Buyer/Seller acts independently 5. uyer/ Seller is free to enter and leave the market
500
What is it called when 2 companies join to form 1 larger company? Why does to government regulate these?
A merger. The government regulates them in order to ensure that a monopoly isn't formed. (Office Depot and Staples)
500
What is a modern day example or hypothetical situation in which companies could participate in collusion?
When 2 companies fix a price on the product, essentially setting a price floor. What is OPEC (Collusion is usually illegal, but OPEC is not an American based operation)
500
Give an example of monopolistic competition. Explain why this product fits the standards for monopolistic condition.
What is any product that 1. is not standardized, 2. has many buyers and sellers, 3. buyers and sellers are well informed, buyers and sellers are free to enter and leave the market, 4.and buyers and sellers act independently
500
Firestone and GM decide to merge. What type of merger would this be considered?
Vertical
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