BJU Economics Ch. 9

Why is it so hard for a new firm to stay in business?

(a)  

The arrangements people have agreed upon to trade with one another are called (a)   .

Economists use the term _______ to refer to any significant obstacle that hinders a new firm from entering an industry and competing on an equal basis.

• barrier
• competition

• collusion

• industry

Monopoly is when (a)   business is the price setter and supplier of an undifferentiated product.

A group of similar businesses that form specific markets.

• Collusion

• Market

• Industry

• Competition

Which one of these characteristics does NOT distinguish one industry from another?

• Number of firms

• Number of employees

• Product differences

• Control of price

• How easy it is to enter or exit the industry

Products that are visibly different, like cars, are what type of product?

• Imperfect

• Differentiated

• Undifferentiated

• Mature

Products that are exactly alike, such as cartons of milk, are what kind of products?

• Imperfect

• Differentiate

• Undifferentiated

• Mature

Some industries can raise prices and consumers have to accept it if there is not much competition. These are called ________.

• Jet setters

• Antitrust

• Oligopoly

• Price setters

(a)   the industry: how easy it is to join and leave the market.