Term
There are many buyers and sellers
Firms produce a standardized product.
Buyers are fully informed about the products, and sllers are informed about resources.
Firms can easily enter or leave the industry |
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Definition
| Four features of perfect competition |
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Term
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Definition
| A product that is identical across sellers such as a bushel of wheat |
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Term
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Definition
| A sole supplier for a product with no close substitutes |
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Term
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Definition
| Know what monopolies have more of than businesses in any other market structure. |
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Term
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Definition
| The ability of a firm to raise its price without losing all sales to rivals |
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Term
Legal Restriction
Economies of Scale
Control of essential resources |
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Definition
| List three entry barriers that protect a monopoly's market |
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Term
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Definition
| Give Examples of legal Restrictions |
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Term
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Definition
| a monopoly sometimes emerges naturally when a firm experiences this |
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Term
Alcoa and Bauxite
China's Pandas to zoos |
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Definition
| Examples of firms having control over an essential resource |
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Term
Monopolies may grow inefficient
Resources wasted Securing Monopoly Privilege
May reduce social Welfare |
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Definition
| Three problems with monopolies |
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Term
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Definition
| explain why a monopoly may grow inefficient |
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Term
Economies of Scale
Government Regulation
Keeping prices low to avoid regulation
Keeping prices low to avoid competition |
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Definition
| list reasons why monopolies might not be so bad |
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Term
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Definition
| Market structure with low entry barriers and many firms selling products differentiated enough that each firm's demand curve slopes downward |
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Term
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Definition
| market structure with a small number of firms whose behavior is interdependent |
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Term
Differentiated- products that differ across producers [Ex. Automobiles - Toyota vs Ford]
Undifferentiated- Products that are identical [Ex. Steel, Oil] |
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Definition
Difference between differentiated and undifferentiated oligopolies
give examples of each |
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Term
economies of scale
high cost of entry
product differentiation costs |
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Definition
| three barriers to entry that oligopolies have |
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Term
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Definition
| Agreement among firms in the industry to divide the market and fix the price |
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Term
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Definition
| government efforts aimed at preventing monopoly and promoting competition in markets where competition in markets is desirable |
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Term
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Definition
| any firms or group of firms that tries to monopolize a market |
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Term
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Definition
| combination of two or more firms to form a single firm |
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Term
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Definition
| involves firms in the same market such as a merger between competing oil companies |
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