Topic Review: Government Intervention and Market Power

Identify the type of market: many small firms, homogenous products, no barriers to entry

• Monopoly

• Monopolistic Competition

• Oligopoly

• Perfect Competition

Identify the type of market: one large firm, high differentiation, no substitutes, extremely high barriers to entry

• Monopolistic Competition

• Perfect Competition

• Oligopoly

• Monopoly

Identify the type of market: many small firms, slightly differentiated products, some barriers to entry

• Oligopoly

• Monopoly

• Monopolistic Competition

• Perfect Competition

Identify the type of market: a few large firms, differentiated products, high barriers to entry

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

How does a monopoly determine its selling price?

• Market Equilibrium Price

• Following the Price of Competitors

• Government Regulated Price

• Where profits are maximised

Which of the following is NOT an example of an Australian oligopoly market?

• Supermarkets

• Airlines

• Motel/Hotel Industry

• Banking Sector

Which of the following is NOT a barrier to entry?

• Finding skilled labour

• Economies of Scale

• Legislation

• Product Differentiation

In which market structure do sellers have the most market power?

• Monopolistic Competition

• Monopoly

• Perfect Competition

• Oligopoly

The market price of a good considers the social and environmental impact involved in production.

• True

• False

The socially optimum quantity is?

• Q

• P

• Q1

• P1