Econ Unit 3 Review

Having many buyers and sellers, identical products, informed buyers and sellers, and free market entry and exit describes....

• Perfect competition

• Monopoly

• Oligopoly

• Monopolistic competition

What barrier to entry involves expenses that a new business must pay before a product reaches consumers?

• Technology

• Start-up costs

• Payroll

• Health insurance

What barrier to entry involves having some technological know how?

• Technology

• Start-up costs

• Payroll

• Health insurance

What do we call it when an industry is dominated by a single seller?

• Perfect competiton

• Monopoly

• Oligopoly

• Monopolistic competition

Natural monopolies are an example of a monopoly that is allowed to exist because they are markets that run best when one firm provides all the supply.

• True

• False

These are licenses that give inventors exclusive rights to sell their product for a certain period of time

• Collusion

• Cartel

• Patents

• Price fixes

Having many firms, few barriers to entry, slight control over price, and differentiated products all describe...

• Perfect competition

• Oligopoly

• Monopoly

• Monopolistic competition

What is a way to attract customers through style, service, and location, but not by lowering prices?

• Nonprice competition

• Cartels

• Collusions

• Price competition

A market dominated by a few, large profitable firms in known as

• Perfect competition

• Oligopoly

• Monopoly

• Monopolistic competition

An agreement among members of an oligopoly to set prices and production levels.

• Collusion

• Cartel

• Price fixing

• Predatory pricing