Market types
What is a market with many small sellers called?
Perfect competition
What does <<<oligo>>> mean?
Few
Apple belongs to which market type?
Oligopoly
One advantage of oligopoly?
✅Stable prices
✅ Innovation and better products
✅ Economies of scale (lower production cost per unit)
✅ High efficiency from competition
What does ,,barriers to entry’’ mean?
Difficulty for new firms to enter market
What is a market dominated by one seller?
Monopoly
Name one feature of oligopoly.
Few sellers ✅
Interdependence ✅
Price stability ✅
Coca-Cola and Pepsi are examples of what?
Collusive oligopoly
One disadvantage of oligopoly?
High prices for consumers
Limited choices
Difficult for new firms to enter
Possibility of collusion
Define ,,collusion’’
Firms cooperating secretly to fix prices
What kind of market is ruled by a few large firms?
Oligopoly 🤩
What causes price stability in oligopoly?
Interdependence between firms🫡
Toyota and BMW belong to which industry?
Automobile Oligopoly🚗
Why is it hard for new firms to enter☹️?
High barriers to entry
What does <<price rigidity>> mean🧐
Prices stay stable even when demand changes
What type of market has both competition and cooperation among firms?
Oligopoly
Who are the major players in the smartphone oligopoly📲?
🍏, Samsung and Huawei
OPEC controls which product?
Oil🛢️
Why do oligopolies sometimes cooperate🤑?
To avoid price wars⚠️
What is [interdependence]🤓
Firms’ decisions affect each other
Which market is least affected by price changes of competitors?
Monopoly
What theory explains why prices don’t change often in oligopoly?
The Kinked Demand Curve Theory🫤
Netflix used to be in which type of market before competition increased?
Monopoly🎥
What happens when firms secretly set prices together?
Collusion🤫
Define |differentiated product|🤩
Products that are similar but not identical