Market Structures & Market Failure

Which best describes a public good?

• A good provided by the government

• A good purchased by individuals

• A good that exists only in a free market

• A good that produces no externalites

Why does no one firm dominate in a perfect competition?

• 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

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

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

Businesses can "Collude" or work together to set prices

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic Competition

Choose the example that goes best with an oligopoly.

• apples
• cell phone providers
• utilities
• clothing

Which of the following industries is an example of a monopoly?

• utilities/water

• department stores

• auto industry

• commercial airlines

The jeans industry would fall into what type of market structure? ( jeans are similar but there are some differences in the product)

• monopoly
• oligopoly
• perfect competition
• monopolistic competition

Public utilities are an example.

• Perfect Competition

• Natural Monopoly

• Monopolistic Competition

• Oligopoly

In this market, the producer is the least responsive to buyers' needs and wants.

• Perfect Competition

• Pure Monopoly

• Monopolistic Competition

• Oligopoly

When firms agree to charge the same or similar prices for a product, this is known as

• price-fixing

• independent behavior

• natural monopoly

• laissez-faire