Market Structures
This market structure has many producers. Example goods are often agricultural products.
What is pure/perfect competition?
Cigarette smoke inhaled by a non-smoker is this kind of market failure.
What is negative externality?
This is how the government is able to provide a public good.
What is through taxes?
This is another reason why the government will provide a public good.
What is the Free Rider Problem?!
This type of market includes one unique product that is often naturally provided by one producer.
What is a monopoly?
DOUBLE JEOPARDY! This type of market failure is like when one child is protected because another child gets vaccine.
What is positive externality?
A street lamp is an example of this type of good.
What is a public good?
These are ways in which the government can make sure externalities are addressed.
What are laws, policies, subsidies and/or taxes?
This market structure requires producers to compete with each other on a regular basis, using strategies like added services and advertising.
What is monopolistic competition?
This is when the costs and benefits of a good cannot be accurately reflected in the price.
What is a market failure?
Gas and electricity supply is considered this type of good.
What is a private good?
These are ways the government can step in to protect workers.
What are laws around working conditions, worker pay, hours and/or discrimination?
This type of market structure has the most difficult industries to get into as a producer, usually because of the overhead costs/financial capital.
What is monopoly?
This is when there is a "spill over" effect on someone other than the producer or consumer.
What is an externality?
The consumption of a private good creates this scenario.
What is prevention of another person from consuming it?
DOUBLE JEOPARDY! This was created by the government after the Great Depression to protect customers of banks.
What is FDIC insurance up to $250,000?
This is an illegal, strategic price-setting strategy that industries that are part of oligopolies sometimes participate in.
What is collusion?
This is the closest a product market comes to not needing non-price competition.
What is pure/perfect competition - only the price and quality of the good?
This is the main reason the government chooses to provide a public good.
What is inefficient as a private good?
These have been created by the government to avoid business "price-fixing" and mergers.
What are anti-trust laws?