Economics Ch. 7

a classification that describes the nature and degree of competition among firms in the same industry

• market structure

• pure competition

• market classification

• monopoly

What is a theoretical market structure that requires three major conditions?

Which of the follow is NOT one of the three conditions of a pure competition?

• identical products

• freedom of entry & exit

• very small number of firms

• very large number of firms

What is a market structure that has all of the conditions of pure competition except for identical products?

What is a market structure in which a few very large sellers dominate the industry?

real or perceived differences between competing products in the same industry

• nonprice competition

• product differentiation

• unique competition

• monopolistic competition

What is the use of advertising, giveaways, or other promotions designed to convince buyers that the product is somehow unique or fundamentally better than its competitors’?

• product differentiation

• monopolistic competition

• nonprice competition

• steady competition

a formal agreement to set specific prices or to otherwise behave in a cooperative manner

• price-fixing

• competitive oligopoly

• collusive behavior

• collusion

a market structure with only one seller of a particular product

Philosophy that government should not interfere with business activity

• non-government competition

• monopoly

• laissez-faire

• nonprice competition