Forms of Competition
This type competition has all of the conditions of pure competition except for identical products
What is Monopolistic competition?
The market structure in which a few very large sellers dominate the industry
What is Oligopoly?
This is a market structure with only one seller of a particular product
What is a Monopoly?
This occurs whenever a flaw in the market system prevents an efficient allocation of resources
What is Market failure?
The market structure called perfect competition is best described as
What is Theoretical?
The use of a brand name & giveaways are designed to convince buyers that their product is unique or better than their competitors
What is Nonprice competition?
Oligopolists also compete using what type of competition
What is Nonprice competition?
The monopoly based on the absence of other sellers in a certain geographic area
What is Geographic monopoly?
In this economy, monopolies might be more common because the government would play little in controlling their development
What is a Laissez-faire?
The group of firms that produce identical or similar products to keep the market to themselves
What is an Industry?
This form of competition involves the three necessary conditions (Very Large Numbers, Identical Products, Freedom of Entry & Exit)
What is Pure competition?
The tendency of oligopolists to act together often shows up in what type of behavior
What is Pricing behavior?
Where a single firm can produce the product more cheaply than any number of competing firms could
What is a Natural monopoly?
The situation in which the average cost of production falls as the firm gets larger
What is Economies of scale?
This is important to monopolistic competitors because they need it to promote their products
What is Advertising?
The theoretical market structure characterized by a large number of well-informed independent buyers & sellers who exchange identical products & have freedom of entry & exit
What is Perfect competition?
A formal or informal agreement to set specific prices or to otherwise behave in a cooperative manner
What is Collusion?
The monopoly that is owned & operated by the government
The uncompensated side effect that either benefit or harms a third party not involved in the activity that caused it
What is an externality or spillover effect?
The real or perceived differences between competing products in the same industry
What is Product differentiation?
A classification that describes the nature & degree of competition among firms in the same industry
What is Market structure?
This form of collusion is an agreement to charge the same or similar prices for a product that are higher than those determined under competition
What is Price-fixing?
The monopoly based on ownership or control of a manufacturing method, process, or other scientific method
What is Technological monopoly?
The practice of selling the same product to different consumers at different prices
What is Price discrimination?
This condition differentiates a market of pure competition from one of monopolistic competition
What is Products?