Market Structures

forms when barriers prevent firms from entering a market that has a single supplier

• Monopoly
• Government Monopoly
• Natural Monopoly
• Oligopoly

A market that runs most efficiently when one large firm provides all of the output

• Natural Monopoly
• Monopoly
• Government Monopoly
• Oligopoly

the division of consumers into groups based on how much they will pay for a good

• Cartel
• Price Discrimination
• Collusion
• Price War

A market dominated by a few large, profitable firms

• Monopoly
• Natural Monopoly
• Government Monopoly
• Oligopoly

When competitors cut their prices really low to win business

• Price War
• Collusion
• Cartel
• Price Discrimination

An agreement among members of an oligopoly to illegally set prices and production

• Collusion
• Cartel

agreement by a formal organization of producers to coordinate prices and production

• Collusion
• Cartel

a market structure in which a large number of firms all produce the same product and no single seller controls supply or prices

• Natural Monopoly
• Government Monopoly
• Oligopoly
• Pure Competition

a product, such as petroleum or milk, that is considered the same no matter who produces or sells it

• Commodity
• Identical Assests
• Identical product theory
• Price War

any factor that makes it difficult for a new firm to enter a market

• Barrier to Entry
• Start-Up Costs
• Price War
• Collusion