Unit 6 Economics Test Review

PERFECT COMPETITION.........?

• is a type of market that is very competitive and very difficult for companies to make large profits. It is not easy for companies to succeed in this type of market.

• *Three to five firms produce 70-80% of the output

  *Exercise price leadership

  *Difficult market to enter

  *Yahoo, Google, and Bing are examples

• are factors that make it difficult for new firms to enter a market.

• This is a Monopolistic Competition with low barriers to entry.

CHARACTERISTICS OF AN OLIGOPOLY -

• is a type of market that is very competitive and very difficult for companies to make large profits. It is not easy for companies to succeed in this type of market.

• *Three to five firms produce 70-80% of the output

  *Exercise price leadership

  *Difficult market to enter

  *Yahoo, Google, and Bing are examples

• are factors that make it difficult for new firms to enter a market.

• This is a Monopolistic Competition with low barriers to entry.

BARRIERS TO ENTRY.......?

• is a type of market that is very competitive and very difficult for companies to make large profits. It is not easy for companies to succeed in this type of market.

• *Three to five firms produce 70-80% of the output

  *Exercise price leadership

  *Difficult market to enter

  *Yahoo, Google, and Bing are examples

• are factors that make it difficult for new firms to enter a market.

• This is a Monopolistic Competition with low barriers to entry.

Over the past 5 years, 50 new restaurants have opened and 30 have closed in a city. Currently there are 110 restaurants opening in that city.

• is a type of market that is very competitive and very difficult for companies to make large profits. It is not easy for companies to succeed in this type of market.

• *Three to five firms produce 70-80% of the output

  *Exercise price leadership

  *Difficult market to enter

  *Yahoo, Google, and Bing are examples

• are factors that make it difficult for new firms to enter a market.

• This is a Monopolistic Competition with low barriers to entry.

Characteristics of DIFFERENTIATED PRODUCTS -

• Performance, Durability, Reliability, Design, and Style

• is most likely to exist when there is government regulation of the industry.

• is when one company is trying to have control over an entire industry.

• is a good thing because it lets people have access to goods they don't produce themselves. This allows them to buy more things and have a higher standard of living.

A NATURAL MONOPOLY.....?

• Performance, Durability, Reliability, Design, and Style

• is most likely to exist when there is government regulation of the industry.

• is when one company is trying to have control over an entire industry.

• is a good thing because it lets people have access to goods they don't produce themselves. This allows them to buy more things and have a higher standard of living.

A MONOPOLY......?

• Performance, Durability, Reliability, Design, and Style

• is most likely to exist when there is government regulation of the industry.

• is when one company is trying to have control over an entire industry.

• is a good thing because it lets people have access to goods they don't produce themselves. This allows them to buy more things and have a higher standard of living.

Trade-

• Performance, Durability, Reliability, Design, and Style

• is most likely to exist when there is government regulation of the industry.

• is when one company is trying to have control over an entire industry.

• is a good thing because it lets people have access to goods they don't produce themselves. This allows them to buy more things and have a higher standard of living.

If the United States placed high taxes on imported goods

• Performance, Durability, Reliability, Design, and Style

• Interest Rate, Inflation Rate, Rate of Growth, and Speculation

•  less goods would be imported into the United States. That means there is less competition for companies here. The companies could charge higher prices because customers would have no cheaper options to buy. That would hurt the United States economy.

• *Increased domestic unemployment

  * Financial crisis in one country spreading quickly to other countries

  *Lost manufacturing jobs in more developed countries

DISADVANTAGES OF INTERNATIONAL TRADE -

• Performance, Durability, Reliability, Design, and Style

• Interest Rate, Inflation Rate, Rate of Growth, and Speculation

•  less goods would be imported into the United States. That means there is less competition for companies here. The companies could charge higher prices because customers would have no cheaper options to buy. That would hurt the United States economy.

• *Increased domestic unemployment

  * Financial crisis in one country spreading quickly to other countries

  *Lost manufacturing jobs in more developed countries