Models of Comp

A market dominated by a single seller

• monopoly

• oligopoly

• perfect competition

• monopolistic competition

a description of the type of market that a particular business or industry operates in

• market layout

• market structure

• free market

a market structure in which a large number of firms (businesses) produce the same product.

• monopoly

• oligopoly

• perfect competition

• monopolistic competition

Which is not a condition for perfect competition?

• many buyers and sellers

• similar products

• identical products

• informed buyers and sellers

All businesses are PERFECTLY competitive

• True

• False

Example of a natural monopoly

• Microsoft

• Edison (Electric Company)

• AT&T

How do monopolistic competitive businesses compete?

• nonprice competition

• price competition

What is the primary characteristic of an oligopoly market structure?

• A single seller dominates the market

• There are many sellers and buyers

• A few large firms dominate the market

• Products are always homogeneous

A monopoly can result from:

• Excessive competition

• Government regulation

• High consumer demand

• All of the above

Markets with many sellers (perfect or monopolistic competition) have more market power

• True

• False