Market structure with reading questions

The idea that government should not interfere with commerce is called ​ (a)   . Under this philosophy, Government is limited to ​ (b)   . By the 1800's, ​ (c)   was weakening. ​ (d)   , the nature and degree of competition, needed government suppport.

• Laissez-faire
• enforcing contracts and settling disputes
• competition
• Market structure

​ (a)   is characterized by five major conditions. A ​ (b)   is needed to affect price. ​ (c)   are needed to compare quality. ​ (d)   to ensure competition. Buyers and sellers must be ​ (e)   to match prices. Buyers and sellers must be free to ​ undefined   .

• Perfect competition
• large number of buyers and sellers
• Identical products
• Buyers and sellers must be independent
• reasonably well-informed
• conduct business

Few, if any, ​ (a)   markets exist. The closest would be a ​ (b)   . These markets offer ​ (c)   . Although perfect competition is ​ (d)   , It is important to study. Most industries fall into ​ (e)   because they lack 1 or more of the conditions.

• perfectly competitive
• farmer's market
• nearly identical products
• rare
• imperfect competition

​ (a)   has all the conditions of perfect competition except ​ (b)   . Instead, it uses ​ (c)   , real or imagined differences, to attract customers. ​ (d)   is usually a giveaway that attracts customers.

• Monopolistic Competition
• identical products
• product differentiation
• Non-price competition

​ (a)   is a market structure where a few sellers dominate the market. An industry like ​ (b)   is a good example because two companies ​ (c)   . The main issue here is that ​ (d)   .

• Oligopoly
• soda makers
• dominate the market
• one business can change the market output

A ​ (a)   is a market structure characterized by 1 seller. Generally, our country is against this, but there are some situations where it is allowed to exist. The most common in people's lives, ​ (b)   minimizes costs. They exist because it ends up being ​ (c)   letting one business provide the service. In order to operate, these business must get a ​ (d)   from a local goverment.

• monopoly
• natural monopoly
• cheaper and more efficient
• franchise

All of the following are features of perfect competition EXCEPT

• many buyers and sellers
• differentiated products
• buyers that are fully informed about price, quality, and availability of products.
• easy entry into & exit from the industry

This market structure is the only one that charges the price set by supply and demand

• Monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly

This market structure can act like a monopoly if the major firms all set prices the same

• Monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly 

In this market structure, products are similar but have some differences. These slight differences allow producers to have some control over price.

• Monopoly
• Monopolistic Competition
• Perfect Competition
• Oligopoly