STATE-MARKET

It represents the companies' decisions which seek to maximize their profits according to their production costs.​

• Supply

• Demand

Represents the consumers' decisions when they decide to buy a good or service which maximize their satisfaction according to their income.​

• Supply

• Demand

______________competition exists whenever a market, hypothetical or real, violates the abstract tenets of neoclassical pure competition.

• Perfect

• Imperfect

__________ competition is a theoretical market structure in which the following criteria are met: all firms sell an identical product (the product is a "commodity" or "homogeneous")

• Perfect

• Imperfect

Essentially a _______ market is one with freedom of entry and exit, but firms can differentiate their products. For example, hair dressers, bars and restaurants, clothing, etc...

• Monopolistic competition

• Oligopoly

• Oligopsony

• Monopsony

In a _______ a large entity controls a large proportion of the market and drives prices down among wholesalers. For example: British Sugar, Amazon, etc..

• Monopolistic competition

• Oligopoly

• Oligopsony

• Monopsony

The market economy is the organization and allocation of production and consumption of goods that is governed by the free play supply and demand.

• True

• False

There is no need of state participation in an imperfect competition market.

• True

• False

Way in which the government creates and mantains a market economy...

• Providing public goods

• Creating a labor force

• Promoting competition

• All of the above

______ is the economic situation defined by an inefficient distribution of goods and services in the free market.

• Monopoly

• Market failure

• Oligopsony

• Market economy