Understanding Market Structures Flashcard

Front

Characteristic of an oligopoly market structure?

Back

Few firms dominate the market

Front

In a monopoly, why does the firm have significant control over the price?

Back

It is the sole producer of a unique product.

Front

Feature of perfect competition? Options: Firms have significant control over prices, Products are differentiated, There are no barriers to entry, Few firms dominate the market

Back

There are no barriers to entry

Front

Monopolistic competition is characterized by:

Back

Many firms selling differentiated products

Front

What is a common barrier to entry in a market?

Back

Economies of scale

Front

Product differentiation strategies (non-price) are most commonly associated with which market structure?

Back

Monopolistic competition

Front

In an oligopoly, firms are interdependent because:

Back

Each firm's actions affect the market

Front

Which market structure is characterized by a single firm that is the sole producer of a product with no close substitutes?

Back

Monopoly

Front

In perfect competition, the demand curve faced by an individual firm is:

Back

Perfectly elastic

Front

Which of the following is NOT a characteristic of monopolistic competition?

• Many firms
• Differentiated products
• High barriers to entry
• Some control over price

Back

High barriers to entry