Types of Market Structures

What is the least competitive market structure?

• Perfectly Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

What is the most competitive market structure?

• Perfectly Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

What is one characteristic of perfectly competitive firms?

• A) Few producers

• B) Many producers (theoretically infinite), extreme competition

• C) Unique products

• D) High barriers to entry.

What type of products do perfectly competitive firms offer?

• Unique products

• Identical products (brand doesn’t matter)

• Luxury products

• Custom products

Fill in the blank: Perfectly competitive firms have ______ to entry.

• no barriers

• high barriers

• some barriers

• limited barriers

Fill in the blank: Perfectly competitive firms are ______, meaning they have no power to influence market price.

• Price Takers

• Price Makers

• Monopolists

• Oligopolists

What is one characteristic of monopolistic competition?

• Few producers, low competition

• Many producers, relatively high competition

• Identical products

• High barriers to entry/exit

In monopolistic competition, products are similar but ________.

• differentiated
• identical
• uniform
• standardized

What is the characteristics of barriers to entry/exit of monopolistic competition?

• High barriers to entry/exit

• Low barriers to entry/exit

• No barriers to entry/exit

• Moderate barriers to entry/exit

What is one characteristic of an oligopoly?

• A market structure with a single seller

• A market structure with many buyers and sellers

• A market structure dominated by a few large firms

• A market structure with no competition