Market Structures
How many producers are there in a Perfect Competition market?
Many
When producers in a Oligopoly organize themselves to control prices, this is called what?
Cartel Pricing
When it's easy to enter a market, what does it say about competition in that market?
What is it called when production doesn't consider the external cost of production?
Inefficiency
What company owned the patent for the photocopier?
Xerox
How easy is it for producers to enter into a Monopoly Market?
Hard
In a Oligopoly, when producers compete in the features and quality of their products and NOT the price, this is what type of pricing?
Collusion Pricing
Which market structure does the producers have the most control over prices?
Monopoly
The side effects of production is called what?
Externalities
Why did SCM sue Xerox?
For not granting a license to produce the photocopier.
What are different the Market Structure Characteristics?
Number of Producers
Similarity of Products
Ease of Entry
Control over Prices
Every Market Structure Characteristics determines the level of what?
Competition
Why is restaurants in a city an example of monopolistic competition?
All restaurants serve food, but each offer different food options.
The government building roads is an example of what?
Public Goods
What 2 groups was the FTC trying to protect when they filed a lawsuit against the merger of Krogers and Albertsons?
Customers and Workers
How are prices controlled in a Monopolistic Competition market?
Prices are mostly control by consumer, with producers causing some variations.
When one company controls the pricing in an oligopoly is called what?
Price Leadership
Externality
The difficulty to gather information about a product is called what?
Transaction Cost
What was the conflict between Patent Laws and Antitrust laws in the article? According to the courts, who won the conflict?
Patent laws gave exclusive rights to produce
Antitrust laws protect competition
When dealing with Market Structure Characteristics, how many producers would make the market an Oligopoly?
Four producers control 60% of the market.
In a monopoly, why does the similarity of products determines the competition in a market?
There would not be a substitute products
Google is being sued for being an monopoly under what laws?
Antitrust Laws
What is the benefits of Perfect Competition?
Forces producers to be efficient as possible
Consumers only pays the price they want
When IBM was able to enter the market for photocopiers, how did it change the market structure?
It changed it to an Oligopoly.