Perfect Competition
How many firms are there in a perfectly competitive market?
"infinite" or "countless"
How many firms are in a monopoly?
only one firm
The kind of goods sold in a monopolistic competition
substitute goods
The number of firms that dominate this market
is a few
A chocolate bar made of nougat, caramel, and milk chocolate
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An example of a perfectly competitive market
Agriculture, the dairy industry, basic bread production, some technology markets with open-source elements, and local farmers' markets.
These laws are used by the government to control monopolies and to break them up
anti-trust laws
An example of a monopolistic competitive market is
Shoes, Jeans, Tshirts, clothes
An example of an oligopoly is
cell phone providers, cable/wifi, airlines because of high barriers to entry prevent new competitors from easily entering the market
A sweet and salty treat made with peanuts and caramel.
What is a PayDay
In a perfectly competitive market are firms price takers or setters?
Firms are considered price takers; meaning they have no control over the market price
in a monopoly are firms price takers or setters?
price setters
Are monopolistic competitive markets considered very rare or extremely common?
extremely common
Firms in an oligopoly are the type of firms that most commonly try to collude to produce the quantity supplied by
a monopoly
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Are buyers and sellers well informed or in the dark in a perfectly competitive market?
Well informed; they have complete information about the market, including prices, product quality, and all other relevant factors
In a monopoly, the firm's demand curve is ________ as the market demand curve.
In a monopoly, the firm's demand curve is the same as the market demand curve because a single firm controls the entire market, meaning their demand is the same as the total market demand
The 3 ways products can be differentiated
brand, quality & creativity
Firms use this strategy to incentivize consumers to buy their good without changing price
is Non-Price Competition
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In the Perfect competition, the firm’s demand curve is _________.
Perfectly elastic (in theory)
This kind of monopoly exists because the firm controls an invention
a Technological monopoly
Is there a lot of little freedom to enter monopolistic competitive markets?
A lot of freedom due to the low barriers to entry
There only a few firms in an oligopoly because of what factor?
start up costs/barriers to entry
A candy bar consisting of chewy, marshmello flavored nougat wrapped in a rich, chocolaty coating
What is a charleston chew