Perfect Competition
It's the amount of money a perfectly competitive firm will spend on advertising.
What is 0?
If a firm is a monopoly then it has some control over setting this in the market.
What is price?
The goal of advertising for monopolistically competitive firms is to increase competition among firms based on this, instead of based on price.
What is product attributes or features (4 Ps)?
If Market 1 has a Herfindahl Index of 250 and Market 2 has a Herfindahl Index of 259, it's the market with the greater market power.
What is Market 2?
Perfectly competitive firms are "price takers", instead of this kind, like monopolies are.
What is price makers?
In a monopoly industry, monopolies are protected from entry by other firms because of these.
What are barriers to entry?
When comparing 15 and 98, it's the 4-firm concentration ratio that suggests the industry is NOT competitive.
What is 98?
This word describes the accuracy of the following: A restaurant in a rural North Canadian town of 500 has a lower Herfindahl index value than the restaurant industry in a city of 10 million.
What is inaccurate (false)?
It's the number of varieties of products perfectly competitive firms will make in the same product market.
What is one?
Monopolies avoid pricing their goods on this range of price elasticity of demand.
What is the elastic range?
When comparing 115 and 9800, it's the Herfindahl Index number that suggests the industry is NOT competitive.
What is 9800?
When comparing between perfect competition or monopolistic competition, it's the market model with stronger barriers to entry.
What is monopolistic competition.
A perfectly competitive market has this number of barriers to entry.
What is zero?
The amount of economic profit monopolies usually earn is greater than this number in the long run.
What is zero?
A monopolistically competitive market always has more firms than this number, like in a monopoly.
What is one?
The four-firm concentration ratio measures the percentage of total industry sales accounted for by these firms in the industry.
What is the four largest?
A perfectly competitive market has many more firms in it than in this market model, one of the other two we studied.
What is monopoly?
The ability of monopolies to influence the price is called having this power.
What is market power?
When comparing a village in Northern Canada and a large city, the 4-firm concentration ratio for restaurants is likely to be biggest here.
What is a village?
Easy entry and exit is a characteristic of perfect competition and this other market model we studied.
What is monopolistic competition?