ECN 104 Chapter Notes -Economic Equilibrium, Economic Surplus, Diminishing Returns

32 views6 pages

violetcrow90

31 Mar 2013

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

Perfect competition: a market structure in which a very large number of firms produce a standardized product. Monopoly: a market structure in which one firm is the sole seller of a product or service. Monopolistic competition: a market structure in which a relatively large number of sellers produce differentiated products. Oligopoly: a market structure in which a few large firms produce homogenous or differentiated products. Imperfect competition: the market models of monopoly, monopolistic competition, and oligopoly considered as a group. Characteristics of perfect competition and the firm"s demand curve. Very large numbers- a basic feature of a perfectly competitive market is the presence of a large number of independently acting sellers offering their products in large national or international markets. Standardized product- firms in a perfectly competitive industry sell standardized products, they make no attempt to differentiate their products and do not engage in other forms of nonprice competition.

Related Questions

1. Which market structure is characterized by a few interdependent firms?

A) Monopoly.

B) Perfect competition.

C) Monopolist competition.

D) Oligopoly.

2. The correct ranking (put in order) of the degree of market power (from highest to lowest) is

A) Monopoly, monopolistic competition, perfect competition, oligopoly

B) Monopoly, monopolistic competition, oligopoly, perfect competition.

C) Monopoly, oligopoly, monopolistic competition, perfect competition.

D) Oligopoly, monopoly, monopolistic competition, perfect competition.

3. The term monopolistic competition

A) is an alternate expression for monopoly

B) is used to describe perfect competition with strong entry barriers.

C) denotes an industry with one seller of many differentiated products

D) denotes an industry with many sellers of differentiated products.

ceruleanseal203

25. One difference between perfect competition and monopolistic competition is A) firms in a perfectly competitive market produce similar but slightly different products. B) in perfect competition, the product produced has no close substitutes. C) monopolistic competition has barriers to entry, whereas perfect competition has none. D) a small number of firms compete in a monopolistically competitive market and a large number of firms compete in a perfectly competitive market. E) firms in monopolistic competition have some degree of market power.

1. A monopoly market structure is characterized by

a. large number of firms, standardized products, easy entry and exit.

b. large number of firms, differentiated products, easy entry and exit.

C. small number of firms, standardized or differentiated products, difficult entry.

d. one firm, a unique product without close substitutes, and impossible entry.

e. one firm, differentiated product, impossible entry.

2. Which of the following is not a characteristic of monopolistic competition?

a. Differentiated products

b. A downward-sloping demand curve for individual firms

c. Firms that are price makers

d. Impeded entry into the industry

e. A large number of firms

3. One factor that distinguishes oligopoly from other market structures is

a. the ease of entry into the market.

b. the interdependence of firms.

c. the slope of the demand curve.

d. the degree of product differentiation.

e. the amount of advertising expenditures.

lavenderbat941

ECN 104 Chapter Notes -Economic Equilibrium, Economic Surplus, Diminishing Returns

Document Summary

Get access

Related Documents

ECN 104 Chapter Notes - Chapter 9: Monopolistic Competition, Foreign Exchange Market, Perfect Competition

ECN 104 Chapter Notes - Chapter 7: Competitive Equilibrium

ECN 104 Chapter Notes - Chapter 8: Monopolistic Competition, Marginal Revenue, Perfect Competition

Related Questions