Unit 4 Vocabulary AP Microeconomics: Modules 57, 61-68

A _______ is a firm that is the only producer of a good that has no close substitutes.

• Monopolist

• Oligopolist

• Perfect Competitor

• Monopsonist

Fill in the blank: _______ protects a monopolist by preventing other firms from entering the industry.

• Barrier to entry

• Price discrimination

• Market competition

• Consumer demand

A _______ occurs when economies of scale provide a large cost advantage to a single firm that produces all of an industry’s output.

• Natural monopoly

• Perfect competition

• Oligopoly

• Monopolistic competition

An _______ is an industry with only a small number of firms.

• Oligopoly

• Monopoly

• Perfect Competition

• Monopolistic Competition

_______ is a market structure in which there are many competing firms in an industry, each firm sells a differentiated product, and there is free entry into and exit from the industry in the long run.

• Monopolistic competition

• Perfect competition

• Oligopoly

• Monopoly

limits the price that a monopolist is allowed to charge.

• Price regulation

• Market demand

• Production cost

• Consumer preference

occurs when a monopolist charges each consumer his or her willingness to pay—the maximum that the consumer is willing to pay.

• Perfect price discrimination

• Imperfect competition

• Monopolistic competition

• Oligopoly

Firms are _______ when the profit of each firm depends on the actions of the other firms in the market.

• Interdependent

• Independent

• Isolated

• Unrelated

occurs when sellers cooperate to raise their joint profits.

• Collusion

• Competition

• Monopoly

• Deregulation

A _______ is an oligopoly consisting of only two firms.

• Duopoly

• Monopoly

• Triopoly

• Oligopoly