Economics: Pure Competition

Market structure in which a large # of firms produce the same product no single seller controls

• Outstanding competition

• Solid Competition

• Pure Competition

• None of the above None of the above

Product , like petroleum or milk, that is considered the same regardless of who produces it.

• Constant Product

• Commodity

• Consistent Product

• Steady Product Steady Product

Factor that makes it difficult for new firms to enter a market

• Trade Wall

• Trade Gate

• Barrier to entry

• Trade Stand off Trade Stand off

The expenses a new business must pay before it can begin to produce and sell goods

• Roll out fees

• up front payments

• start-up costs

• Seed Money

This market structure has a large number of buyers and sellers with identical products.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Which market structure has the lowest barrier to entry?

• Perfect Competition

• Monopoly

Perfect competition is sometimes called "Pure" competition because:

• Products are identical and price is purely set by the market

• A government agency sets price floors for all products in that market

• A few large firms dominate the market with their slightly differentiated products

• There is only one seller, so the competition is perfect

Under perfect competition,

• products are similar but not identical.
• numerous restrictions prevent firms from entering the market.
• no seller can sell a product above the prevailing market price.
• a single seller can affect price.

Which of the following are characteristics of a PURE COMPETITION?

• High Barriers to Entry
• Easy Entry and Exit from a market
• One Seller
• Non-standardized product

In a monopoly, how many firms control the sale of a product?

• One
• Few
• 15
• 30