Economics Ch. 7 & 8

Front

Why does no one firm dominate in a perfect competition? Options: No firm wants to, Each firm sells to different people, Each firm produces so little of the total supply that they cannot influence prices, One firm will eventually dominate and make it a monopoly

Back

Each firm produces so little of the total supply that they cannot influence prices

Front

Factors that make it difficult for new firms to enter a market are called

Back

Barriers to entry

Front

What prevents firms from entering a monopoly?

Back

Barriers to Entry

Front

Businesses can "Collude" or work together to set prices. Options: Oligopoly, Monopoly, Perfect Competition

Back

Oligopoly

Front

Which of the following industries is an example of a monopoly? utilities/water, department stores, auto industry, commercial airlines

Back

utilities/water

Front

A market that has a few sellers of basically the same goods.

Back

Oligopoly

Front

If a single firm raises its price it will not be able to sell any of its output.

Back

Perfect Competition

Front

Which type of market structures has many producers (companies) and sell similar but different products from each other? These companies have a little control over the price and there are relatively low barriers to entry.

Back

monopolistic competition

Front

List the four market structures in order from least competitive to most competitive: Oligopoly, Monopoly, Perfect Competition, Monopolistic Competition.

Back

Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

Front

When companies that form on oligopoly cooperate together to set or fix prices at a given level, they are engaging in

Back

Collusion