Economics market structures

The government setting a tariff or restriction on a foreign product(import) leads to

• Price rises.

• Price drops.

Product differentiation is

• offering identical products to consumers.

• offering different products to consumers.

• offering similar products to consumers.

When a consumer is willing to buy a good or service.

• elasticity

• demand

The U.S. is mostly a

• centrally planned economy

• a mixed economy mostly socialist economy

• a mixed economy mostly market(capitalism) economy

Law of Supply =

• higher the price the higher quantity produced

• the smaller the quantity produced

• the more consumers are willing to pay

Barriers to entry =

• perfect competition

• make it difficult for new firms to enter the market

• factors of production

Monopolistic competition=

• one company selling different. products

• very few companies

• many different companies selling similar but not identical products

Monopoly=

• one seller

• Barriers to entry

• no product differentiation

• very competitive

What kind of products. are sold in a perfectly competitive market?

• products are similar but not identical

• products are identical

One advantage of a franchise is

• the training and advertising is provided by parent company

• profit goes to owner