Topic 4 Lessons 1 & 2 Review (Economics)

Pure competition is also called (a)   competition.

When a firm has more than 50% of the market share, has complete control over prices, this is considered a what?

• monopoly

• oligopoly

• pure competition

• monopolistic competition

A product that is considered the same regardless of who makes or sells it, is considered a(n) ________.

• product

• commodity

• franchise

• farm

JEA and FPL are examples of when a market runs more efficiently with one supplier. This is called what?

• franchise

• patent

• natural monopoly

• monopoly

Patents, licenses, and franchises are ways the government creates monopolies.

• TRUE

• FALSE

Factors that make it difficult for new firms to enter a market are called__________.

• government monopoly

• barriers to entry

• imperfect competition

• licenses & patents

Market control is the ability to control prices and how much of a product is produced.

• TRUE

• FALSE

Barriers to entry can lead to ​ (a)   competition. This is a market structure that fails to meet the condition of ​ (b)   competition.

• imperfect
• pure
• helps
• good
• hard
• doesn't

Which of these are barriers to entry?

• high start-up costs

• not enough equipment

• complex technology

• no workers available

• price discrimination

Market power is when a seller can charge different customers, that are basically identical different prices in an attempt to extract as much profit as possible.

• TRUE

• FALSE