Market Structures 1
Which of these would be sold in the closest to a perfectly competitive market?
Milk
Cars
Designer clothing
Milk
The market for cellphones is dominated by Apple and Samsung. This makes it a...
Oligopoly
Sole proprietorship
The main reason that people might buy a gold-plated Rolls Royce instead of a Toyota Corolla, even though it's more expensive
Status/image
Why do monopolistically competitive firms have relatively little control over their pricing?
They have lots of competition selling substitutes
A market dominated by a single seller
Monopoly
What is liability?
Being responsible if you go into debt or get sued
Why would a government pass antitrust laws?
To stop monopolies + encourage competition
What type of market has firms that are price takers?
Perfect competition
A market dominated by a few sellers is a....
Oligopoly
What is the advantage of a limited liability partnership over a limited partnership?
Less liability
What it's called when a company hires another company to do a job for them
Outsourcing
If many sellers are all selling slightly different products, what type of market structure is it?
Monopolistic competition
As a company gains market power, what happens to its power to set prices and output?
Its gains power over both
A type of business organized to benefit society instead of making profit
Nonprofit
Right-to-work laws have what effect on employees and unions?
Remove the ability for employees to challenge hiring and firing
If many sellers are all selling identical products, what is the market structure?
Perfect competition
To maximize profits, monopolies will ______ output and ______ prices
Limit, increase
Do general partnerships protect against liability?
No- everyone is fully liable
Advertising is a way for monopolistically competitive firms to increase the demand for their products. This type of practice is called...
Non-price competition