Market Structures and Competition Concepts

The video explores four market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. It discusses how market prices are set based on these structures, highlighting the characteristics and examples of each. Perfect competition involves many small firms with homogeneous products, while monopolistic competition features differentiated products and easy market entry. Oligopoly is dominated by a few large firms with restricted entry, and monopoly is characterized by a single firm with high entry barriers.

In a perfectly competitive market, what determines the price of goods?

• Consumer preferences

• Supply and demand

• Individual producers

• Government regulations

Which of the following is a characteristic of perfect competition?

• High barriers to entry

• Differentiated products

• Large number of small firms

• Price control by individual firms

What is a key feature of monopolistic competition?

• Identical products

• Few large firms

• Single producer

• Differentiated products

In monopolistic competition, how do firms maintain some control over their prices?

• By differentiating their products

• By producing identical products

• By forming cartels

• By reducing production costs

Which market structure is characterized by a few large firms dominating the market?

• Monopoly

• Perfect competition

• Oligopoly

• Monopolistic competition

What is a common barrier to entry in an oligopolistic market?

• High product differentiation

• Government subsidies

• Low consumer demand

• High entry costs

In an oligopoly, how is the demand curve typically described?

• Perfectly elastic

• Perfectly inelastic

• Downward sloping and relatively inelastic

• Upward sloping and elastic

What defines a monopoly in terms of market structure?

• Several large firms

• No barriers to entry

• Many small firms

• A single firm

Why are monopolies able to control prices?

• Because of product differentiation

• Due to government intervention

• Due to high competition

• Because they are the sole provider

Which of the following is an example of a monopoly?

• A local bakery

• The Öresund bridge

• A chain of restaurants

• A car manufacturing company