Perfect Competition
Give one example of a perfectly competitive market
Examples vary, must include many producers, identical producs, easy entry into market, no price control
Give one example of a monopolistic market
Answers may vary but should include one producer, unique product, high barrier to entry, substantial price control
Give one example of an oligopoly market
Answers may vary but should include few producers, similar produts, high barriers to entry, some price control (airlines, cars, soft drinks)
Give an example of a monopolistic competition
Answers may vary but should include many producers, different products, easy to join, some (low) price control - example = restaurants
What brand did Rihanna launch in 2019
Her Fashion brand with Louis V
Describe the barriers to entry in a perfectly competitive market (in your words)
Easy to join this kind of market (low barrier to entry)
What type of monopoly is DeBeers diamond company?
Resource monopoly
When producers get together to decide production levels and prices?
Collusion (Cartel is OK as well)
What is it called when companies in monopolistic competition try to seperate themselves from other companies? (create their own ......)
Brand!
What country did she recieve some Military training from?
Barbados
Why do consumers like perfect competition markets?
Because they have lots of options for who to buy from
What type of monopoly is PeoplesGas?
Natural Monopoly
OPEC is a cartel. What do they control the price and supply of?
Oil -> middle eastern countries
What is it called when customers prefer one company over another in monopolistic competition
Brand loyalty
What type of competition did Rihanna win when she was in High School
A Beauty Pagent
What is Market Power?
The control over price that a single company has
Connect monopolies to economies of scale!
Greater efficiency from a bigger business -> natural monopolies
With cartel and collusion behavior, which other market type can Oligopoly act like?
Monopoly
How do monopolistic competitive firms try to set themselves apart with status and image?
One brand will say it is more trendy or natural or fashionable than another
How old was Rihanna when she signed her first record deal?
16 (closest wins)
At which price on a graph do perfect competitive producers sell?
The equilibrium (efficient) price - not true for other market types
what does it mean to be a price setter?
You can charge different prices you want - monopolies are price setters
What is a four firm concentration ratio of 70%
Top 4 companies control 70% of the supply
How do monopolistic competitive firms try to set themselves apart with location?
They will exist in a certain area to try and attract more customers from that area
Brittany Spears