Unit 4 - Business Organizations and Labor

Market Power refers to the ability for businesses to:

• Set market prices for items

• Shows their dominance in the market

• Is a ranking system of CEOs

• Shows which company is best

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

• Hurdles to Entry

• Barriers to Entry

• Defensive Marketing

• Perfect Competition

A monopoly occurs when:

• 2-4 sellers dominate a market

• Many sellers sell identical products

• Many sellers sell similar (but not identical) products

• 1 seller dominates the market

A oligopoly occurs when:

• 2-4 sellers dominate a market

• Many sellers sell identical products

• Many sellers sell similar (but not identical) products

• 1 seller dominates the market

Monopolistic competition occurs when:

• 2-4 sellers dominate a market

• Many sellers sell identical products

• Many sellers sell similar (but not identical) products

• 1 seller dominates the market

Perfect competition occurs when:

• 2-4 sellers dominate a market

• Many sellers sell identical products

• Many sellers sell similar (but not identical) products

• 1 seller dominates the market

Gulf Power controls energy in the Gulf Coast area, and (generally speaking) is the only supplier for electricity. This is an example of which market structure?

• Pure monopoly

• Natural monopoly

• Resource monopoly

• Opportunistic monopoly

The most common form of business organization is the:

• Sole proprietor

• Partnership

• Corporation

• Franchise

A business organization owned by two or more persons who agree on a specific division of responsibilities and profits is known as a:

• Sole proprietor

• Partnership

• Corporations

• Franchise

A separate legal entity owned by individual stockholders, each of whom faces limited liability for the firm's debts and interactions, is known as a:

• Sole proprietor

• Partnership

• Corporation

• Franchise