Monopoly
What kind of control do firms in a perfectly competitive market have over price?
no control over price (price takers)
How many buyers and sellers are there in perfectly competitive market?
many buyers and sellers
How many firms are in a market that is considered to be an oligopoly?
a few that dominate
What barrier to entry exist in monopolistic competition?
low barriers exist
These are policies that encourage competition in the marketplace.
What are anti-trust laws?
"My product is unique (you can't get it anywhere else) and this market is very hard, if not impossible to break in to. Who am i?"
What is a monopoly?
What type of products are offered in perfect competition?
identical products are offered
This is an agreement among firms to divide the market, set prices, or limit production.
What is collusion?
This is the amount of control a monopolistically competitive firm has over price.
What is slight control?
This form of temporary monopoly is granted by the gov't to inventors and producers of innovative goods and services.
What is a PATENT
What kind of variety is there iin the goods being produced?
no variety because they are the only seller
What kind of information do buyers and sellers have about the products in perfectly competitive markets?
full information about features and price
What barriers to entry exist in oligopolies?
high barriers exist
These are some of the ways monopolistically competitive firms set themselves apart from their competitors. They include service level and physical characteristics.
What is nonprice competition?
The market for smartphones
What is an oligopoly?
What kind of control is there over price in a monopoly?
total control over price (price makers)
In the real world, although perfectly competitive markets are extremely rare, a few approximations exist. Give 1 example
Farming (wheat, corn)
This is the name for a formal organization of producers that agree to coordinate prices and production.
What is a cartel?
Consumers stick with certain goods/services because of what
Brand loyalty, and/or preferences
This is the removal of some government controls over a market.
What is deregulation?
What are the four types of monopolies
Natural, Geographical, Technological, and Governmental
Because sellers have no influence over the price in this market structure they are called this.
Price takers - no control over price
What do we call the way that firms attract customers through style, service, or location, but not a lower price?
non-price competition
This is making a product similar, but not identical to other products in the market.
What is differentiation?
This is the combination of two or more companies
What is a merger and the government?