Term
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Definition
| products are the same or similar; easily substituted |
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Term
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Definition
| differentiated product; real or perceived differences exist (color, style, quality) |
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Term
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Definition
| action taken by industry leader (i.e., Nike) to raise the price; other large firms follow suit (Put which market structure this is. |
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Term
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Definition
| a firm that takes the market price determined by supply and demand |
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Term
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Definition
| a firm that has control over the price of the product is sells; no competition. |
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Term
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Definition
| Bills and acts designed to monitor and regulate big business, prevent monopolies. |
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Term
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Definition
• Example
Agriculture Products
• Number of firms
MANY
• Type of product
Homogeneous (same or similar)
• Conditions to entry
Free or very easy
• Type of price setting behavior
Determined by market
• Existence of non-price competition
none
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Term
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Definition
• Example
Tennis Shoes
• Number of firms
MANY
• Type of product
Differentiated (Heterogeneous)
• Conditions to entry
Relatively easy
• Type of price setting behavior
Determined by market and small amount of discretion
• Existence of non-price competition
Some, especially by advertising
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Term
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Definition
• Example
Steel; mail delivery service (fed-ex)
• Number of firms
FEW
• Type of product
Homogeneous (same or similar)
• Conditions to entry
Substantial Barriers
• Type of price setting behavior
Determined by market & considerable discretion; possible price leadership
• Existence of non-price competition
Some; such as on-time delivery
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Term
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Definition
• Example
• Number of firms
FEW
• Type of product
Differentiated (Heterogonous)
• Conditions to entry
Substantial barriers
• Type of price setting behavior
Determined by market & considerable discretion; possible price leadership
• Existence of non-price competition
extensive
Cars
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Term
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Definition
• Example
Public Utility
• Number of firms
ONE
Unique- only one of its kind available
• Conditions to entry
Can be blocked
• Type of price setting behavior
Establishes prices at most profitable level possible
• Existence of non-price competition
Advertising of firms "image"
• Type of product
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