Important words
Important definitions
Pictures
Questions
More questions!
100
Laissez-faire
philosophy that government should not interfere with commerce or trade
100
a state of limited competition, in which a market is shared by a small number of producers or sellers.
Oligopoly
100
What kind of market structure?
Perfect Competition
100
What was the first significant law, in U.S history, against monopolies with the intent to protect trade and commerce against unlawful restraint and monopoly?
Sherman Antitrust Act
100
What are the effects of inadequate competition?
higher prices, artificial shortages and market failures
200
Market Structure
the nature and degree of competition among firms operating in the same industry
200
the exclusive possession or control of the supply of or trade in a commodity or service
Monopoly
200
What kind of market structure?
Monopolistic Competition
200
The barriers to entry for a monopoly is?
Impossible/Blocked
200
H.E.B does not have a competitor in its hometown of San Antonino. What kind of Monopoly is this?
Geographic Monopoly
300
Nonprice competition
the use of advertising, giveaways, or other promotional campaigns to convince buyers that the product is somehow better than another brand
300
formal agreement to set prices or to otherwise behave in a cooperative manner
Collusion
300
What kind of market structure?
Oligopoly
300
The price setting power in a perfect competition can be described as?
none- they are price takers
300
How many conditions are necessary are needed to characterize a perfectly competitive market?
*500 point bonus if you can name all 5*
5
400
Barriers to entry
factors that can prevent or impede newcomers into a market or industry sector, and so limit competition
400
to a market structure that lacks one or more of the conditions of perfect competition
Imperfect competition
400
*This is a water treatment plant*
Monopoly
400
How much non price competition, or advertising, is used in oligopolies?
extensive
400
In a perfectly competitive markets buyers and sellers deal _________ products?
Identical
500
Monopolistic Competition
the market structure that has all the conditions of perfect competition except for identical products
500
large number of well-informed independent buyers and sellers who exchange identical products
Perfect Competition
500
Oligopoly
500
The profit maximizing quantity of output is found when?
Marginal revenue = Marginal Cost
500
What is the difference between perfect competition and monopolistic competition?
Everything is the same except for they the products they sell