Market Structures Vocab Flashcard

Front

Which market structure is characterized by a large number of small firms, identical products, and easy entry and exit?

Back

Perfect Competition

Front

A commodity is:

Back

A basic good used in commerce

Front

A barrier to entry is:

Back

A factor that makes it difficult for new firms to enter a market

Front

A monopoly is a market structure characterized by: Multiple sellers and one buyer, One seller and multiple buyers, Multiple sellers and multiple buyers, One seller and one buyer

Back

One seller and multiple buyers

Front

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Back

True

Front

A natural monopoly is a market structure where:

Back

A single firm can supply the entire market at a lower cost than multiple firms.

Front

A patent is:

Back

A type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of years.

Front

What is a franchise?

Back

A business model allowing individuals to operate using a company's brand.

Front

Monopolistic competition is a market structure characterized by:

Back

Many firms selling differentiated products

Front

Nonprice competition refers to strategies used by companies to attract customers without changing the price of their products. Which of the following is an example of nonprice competition? Offering discounts, Improving product quality, Lowering prices, Increasing production

Back

Improving product quality