Flashcards: Market Structure & Business Organization

Front

Characteristics of a perfectly competitive market

Back

free entry and exit

numerous sellers

standardized product

no long-run economic profits.

Front

The sum of all individual supply curves in a market is the

Back

industry supply curve.

Front

If a perfectly competitive firm is making an abnormal profit in the short run, it is certain that

Back

new firms will enter the market until no firms make an abnormal profit.

Front

Which of the following markets most closely resembles perfect competition? Fast food restaurants, Automobiles, Agriculture, Computers

Back

Agriculture

Front

characteristics of a monopolistic market

Back

control over price

one seller

no close substitutes

high barriers to entry,

Front

A market where a single company can supply a product more efficiently and at a lower cost than competitors.

Back

natural monopoly.

Front

How is a legal monopoly created?

Back

issuing patents or copyrights

Front

Why is a monopolist considered a price maker?

Back

They can charge whatever price he wants and will still make a profit.

Front

Which of the following markets most closely resembles monopoly? Diamonds, Breakfast Cereals, Gas Stations, Blue Jeans

Back

Diamonds

Front

characteristics of oligopoly

Back

there is mutual interdependence between the firms

high barriers to entry

there are only a few firms with a concentration ratio usually above 50%

it is only possible to make abnormal profits in the short run.