Econ - U3 Review - Business Organizations & Market Structures

Product Differentiation

• Real or imagined differences between competing products in the same industry

• exists at any price other than the equilibrium price. When the market is in disequilibrium, either excess demand or excess supply exists in the market

• A firm with some power to set the price because the demand curve for its output slopes downward; a firm with market power

• a market that runs most efficiently when one large firm supplies all of the product.

The percentage of profits a sole proprietor gets to keep?

• 0%

• 50%

• 75%

• 100%

A partnership that has at least one general partner with unlimited liability

• limited partnership

• general partnership

• special partnership

• none of these

A partnership in which all partners assume full personal liability for debts of the firm

• general partnership

• limited partnership

• dormant partnership

• non-trading partnership

A form of business in which one person owns all the assets and assumes full liability

• Sole Proprietorship

• Partnership

• Corporation

• None of these

A partner who may be known to the public but takes no active role in management

• silent partner

• secret partner

• special partner

• dormant partner

A single seller in a market is a(n)

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

A market structure with many companies selling similar products is a(n)

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

A market with many buyers and sellers, identical products, and free entry and exit is a(n)

• monopoly

• oligopoly

• monopolistic competition

• perfect competition

Cellular service providers are the best example for what type of market structure?

• monopoly

• oligopoly

• monopolistic competition

• perfect competition