Perfect Competition to Wages

Price takers are individuals in a market who:

• select a price from a wide range of alternatives.
• select the lowest price available in a competitive market.
• select the average of prices available in a competitive market.
• have no ability to affect the price of a good in a market.

Why does no one firm dominate in a perfect competition?

• No firm wants to
• Each firm sells to different people
• Each firm produces so little of the total supply that they cannot influence prices
• One firm will eventually dominate and make it a monopoly

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

Why is the NFL considered a monopoly?

• There are no other professional American football leagues in the world 
• They make the most money of all the professional sports
• It is only in the US
• The players have control over the price

Define Perfect Competition

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

• a product that is the same no matter who produces it

• a market structure that in which a large number of firms all produce the same product

• market structure that does not meet the conditions of perfect competition

Which of the following is one of the four conditions for perfect competition?

• Buyers and sellers are well informed about products

• Many buyers and sellers participate in the market

• Both A and B

• None of the Above

What are Identical Products?

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

• A market structure that does not meet the conditions of perfect competition

• Products that are different in every way

• No differences between the products sold by different suppliers

How do produces create informed buyers?

• Products that are different in every way

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

• The market provides the buyer with full information about the product’s features and price

• No differences between the products sold by different suppliers

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

SSEMI3 b This market structure has a large number of buyers and sellers with identical products

• Perfect Competition
• Monopolistic Competition
• Oligopoly
• Monopoly