Level 1
Level 2
Level 3
100
A market structure in which only a few sellers offer similar or identical products.
Oligopoly
100
The first type of imperfectly competitive market is an oligopoly in which only ____________ each offering the same or identical to the others.
a few sellers
100
Prices in an oligopoly are usually lower than in a monopoly, but higher than it would be in a competitive market.
Pro
200
A group of firms acting in unison
Cartel
200
Oligopolies with three or more members face the same problems as oligopolies with only _____ members.
Two
200
Prices tend to remain stable because if one company lowers the price too much, then the others will do the same. The result lowers the profit margin for all the companies, but is great for the consumer.
Pro
300
A situation in which firms in a certain industry have competitors but at the same time do not face so much competition
Imperfect Competition
300
Although oligopolists would like to form cartels and earn monopoly profits, often that is ____ possible.
Not
300
Major barriers keep companies from joining oligopolies. The major barriers are economies of scale, access to technology, patents, and actions of the businesses in the oligopoly. Barriers can also be imposed by the government, such as limiting the number of licenses that are issued.
Con
400
An oligopoly with only two firms
Duopoly
400
Anti- Trust laws ________ explicit agreements among oligopolists as a matter of public policy.
Prohibit
500
These are statutes developed by the U.S. Government to protect consumers from predatory business practices by ensuring that fair competition exists in an open-market economy.
Anti-Trust Laws
500
A Duopoly only has ___ firms
2
500
Oligopolies develop in industries that require a large sum of money to start. Existing companies in oligopolies discourage new companies because of exclusive access to resources or patented processes, cost advantages as the result of mass production, and the cost of convincing consumers to try a new product.
Con
M
e
n
u