Market Structures

________________ is a market structure characterized by a very large number of buyers and sellers of an identical product.

• monopolistic competition

• oligopoly

• pure (perfect) competition

• monopoly

___________________ is a market structure characterized by a very large number of buyers and sellers of an identical product. (Example: commodities like crude oil) 

• perfect competition
• monopsony
• oligopoly
• monopoly

______________ refers to a market structure characterized by a large number of buyers and sellers of products that are similar to one another that can be differentiated by brand, quality, etc. (Examples: restaurants and retail clothing sellers) 

• perfect competition
• monopolistic competition

• oligopoly
• monopsony

An __________ is a market structure characterized by only a few sellers of a product who dominate the market. (Examples: breakfast cereals and natural gas) 

• cartel
• monopoly
• perfect competition
• oligopoly

A ___________ is a market structure characterized by only one seller of a product dominating the market. (Example: electrical power companies and cable television companies in certain areas) 

• oligopoly
• monopsony
• perfect competition
• monopoly

Number of Sellers: Are there many, few, or one seller(s) of the product? The more sellers there are, the more ________________ the market is. 

• competitive
• saturated
• limited
• monopolistic

Barriers to Entry: Are there any obstacles that prevent other firms from entering the market for the good? If barriers are weak or absent from the market, the market will be more ___________.

• competitive
• monopolistic
• saturated
• unprofitable

Price Control: Can the individual firms in the market for a product exercise any control over the price they charge? If not, they are called a price-taker because they must accept the market price as their own. The weaker the control over price, the more _______________ the market. 

• regulated
• oligopolistic
• monopolistic
• competitive

This means is there any difference between the products sold by the sellers in the market for the good?

• regulation

• price wars

• product differentiation

• barriers to entry

These could be as a result of legal obstacles from specific laws, patents, copyrights, and trademarks, or they could be due to natural obstacles like extensive economies of scale for large producers or dominating a key resource needed to produce the good. 

• scarcity

• number of sellers

• product differentiation

• Barriers to entry