Ag Econ Competition

What are the four key market structural characteristics used when determining the competitive behavior of a market. Select all answers that apply.

• Barriers to entry

• produce differentiation

• economic environment

• number of firms and size

The government can administer _____ _____ such as patents, copyrights, and import controls that protect one or more sellers from all or some of the potential entrances to a domestic industry.

_____ _____ and agreements refer to arrangements among producers and processors of agricultural commodities. The Goal is to improve producer income through the orderly marketing of a commodity by a group of producers to avoid price fluctuations faced by an individual operating alone in the market place.

• ceiling price

• marketing order

• lump sum tax

• minimum price

The government can regulate the price of a resource by imposing a __________ __________ that must be paid for a resource. The __________ __________ regulation cause monopsonist to employ more units and pay a higher price per unit for the resource.

• ceiling price

• lump sum tax

• minimum price

• marketing orders

_____ _____and cost barriers exists when the capital investment required for efficient operation is large.

An _____ _____ _____barrier generally exists when the smallest efficient-sized plant is large relative to the size of the market, and smaller firms face significantly higher cost of production.

An _____ _____cost to barriers exist if the unit cost of production for and established firm is lower at all levels of output that would be the case for a new entrant.

A government may eliminate or reduce the profit of a monopoly by assessing a __________ __________ on the firms operation. The tax may be a licensing fee, or one time charge, corresponding to a fixed tax, regardless of output.

• ceiling price

• lump sum tax

• minimum price

• marketing orders

A regulatory agency may reduce profit and actually effect and increase in the output of a monopoly by instituting a maximum or_________ __________ that can be changed. By instituting a __________ __________, the government would encourage a monopolist to produce more output and charge a lower price.

• ceiling price

• lump sum tax

• minimum price

• marketing orders

prohibited monopoly and restrictive businesses practices. Illegal restraint trade by conspiring with other firms. Forbids restraint trade through price-fixing arrangements, controlling, or sharing industry output and use of economic power to exclude competitors from any market.

• sherman anti trust act 1890

• capper volstead act 1922

• agricultural marketing agreement act of 1937

• robinson Patman act 1936