Market Structures 2

When trying to start a business and enter a certain product market, there are fees and licenses to apply for and equipment to purchase. These are all__

• consumer products

• factors of production

• barriers to entry

• supply & demand

The effort by sellers to agree to secretly set production levels or prices is called

• cartel

• antitrust

• price leadership

• collusion

The situation in which sellers undercut each other’s prices in an attempt to gain market share is called:

• interdependent pricing

• price war

• price leadership

• price competition

In economics and in the law, the term "trust" refers to ___

• business owners that believe in the law

• banks that loan funds to businesses

• wealthy people who inherited their fortures

• businesses that have become monopolies

The US Gov't passed "antitrust" laws in an effort to eliminate the ability for businesses to __

• create new techonologies

• enlarge profits

• become a monopoly

• compete for market share

Huge monopolies dominated the American marketplace in the late 1800s. This lead the US Gov't to set (______) laws to break them up.

• bankruptcy

• anti-trust

• anti-competition

• prohibition

Businesses and inventors are able to apply for a ___ in order to protect themselves from competitors copying their technology

• trademark

• copyright

• trust

• patent

In Monopolistic Competition you would find that purchases are made generally based on __

• supply/demand

• brand loyalty

• price

• price of substitute products

The ways in which the competitors try to gain new customers in a Monopolistic Competition is by __

• showing their product is superior

• using famous spokespeople to endorse their product

• better prices

• getting the gov't to put competitors out of business

An Oligopoly is when there are

• few producers who control the market

• only one producer

• an open market with plenty of producers

• a market that hasn't yet been discovered