Market Structure_Part 1

What is NOT a characteristic of a Perfect Competition?

• A large number of firms in the market

• An undifferentiated product

• Ease of entry into the market or no barriers to entry

• Incomplete information available to all market participants

In Perfect Competion, firms cannot make their own independent production decisions and force the price that is established in the market by the overall forces of demand and supply.

• True

• False

An example of a Monopoly is the agricultural market in our country.

• True

• False

An example of a Perfect Competition is the shampoo and conditioner market in our country.

• True

• False

What is NOT a characteristic of a Monopoly

• Tendency to have normal profits

• Strong barriers to entry

• Has a unique product

• Price Maker

Products in a Monopoly market structure have no close substitutes

• True

• False

This is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers

• Monopoly

• Monopsony

• Oligopoly

• Perfect Competition

Firms can freely enter and exit the market in this market structure.

• Monopoly

• Perfect Competition

• Oligopoly

• Monopsony

Anti-trust Laws and Free Competition Laws are established to curb the ill effects of Monopoly and Cartels

• True

• False

What market structure has its product likely protected by patents and copyrights?

• Oligopoly

• Monopsony

• Monopoly

• Perfect Competition