Market Structures

An oil driller, oil refinery, and gas company merge.... this is a ________________ merger

• horizontal
• vertical
• inappropriate
• monopolistic

Choose the example that goes best with an oligopoly.

• apples
• cell phone providers
• utilities
• clothing

An industry that is dominated by a few large firms is 

• monopolistic competition.
• a monopoly.
• perfect competition.
• an oligopoly.

Public utilities are an example.

• Perfect Competition

• Natural Monopoly

• Monopolistic Competition

• Oligopoly

Which of the following industries is an example of a monopoly?

• utilities/water

• department stores

• auto industry

• commercial airlines

What prevents firms from entering a monopoly?

• Barriers to Entry

• Technology

• Price

• Barriers to Travel

Factors that make it difficult for new firms to enter a market are called

• Barriers to entry
• Factors of production
• Limited supply
• Monopolistic Outlook

Businesses can "Collude" or work together to set prices

• Oligopoly
• Monopoly
• Perfect Competition

Why does no one firm dominate in a perfect competition?

• No firm wants to
• Each firm sells to different people
• Each firm produces so little of the total supply that they cannot influence prices
• One firm will eventually dominate and make it a monopoly

Market failure occurs whenever

• free markets fail to distribute resources efficiently.

• goods fail to arrive at a market in a timely fashion.

• government builds infrastructure.

• voluntary exchange in a market fails to result in a sale.