Econ Review- 7, 8, 9

Which is NOT a characteristic of perfect competition?

• Numerous buyers and sellers
• Standardized product
• Differentiated product
• Independent buyers and sellers

Only one seller sells a product for which there are no close substitutes

• Monopoly
• Oligopoly
• Monopolistic competition
• Perfect competition

Exists when many sellers offer similar, but not standardized products

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

Exists when there are no other producers within a certain region

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Exists when the business controls a manufacturing method or an invention protected by a patent

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Postal service

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Water company

• Natural monopoly
• Government monopoly
• Technological monopoly
• Geographic monopoly

Which is NOT an example of non-price competition?

• Excellent service
• 50% off deal
• Attention getting advertisements
• Free kids meal with every adult meal

Laws that define monopolies and give government the power to control them and break them up

• Regulation
• Antitrust legislation
• Market allocation
• Deregulation

Externality

• uncompensated side effects of an action that affect a third party

• market structure having all conditions of pure competition except for identical products

• philosophy that government should not interfere with business activity

• classification according to number and size of firm, type of product, and type of competition