Market Structures and Competition Concepts

The video introduces various market structures, including perfect competition, monopoly, and monopolistic competition. It explains the characteristics and features of each market type, such as the number of buyers and sellers, product differentiation, and price influence. The video also briefly covers other market structures like monopsony, duopoly, and oligopoly.

What is a key feature of a market that allows transactions without geographical limitations?

• System of communication

• Geographical restrictions

• Physical presence of buyers and sellers

• Fixed location for transactions

In a perfectly competitive market, what role do individual firms play in setting prices?

• Price influencers

• Price negotiators

• Price takers

• Price makers

Which assumption is NOT associated with a perfectly competitive market?

• Homogeneity of products

• Free entry and exit

• High advertisement costs

• No transport costs

What distinguishes a monopoly from other market structures?

• Homogeneous products

• Free entry and exit

• Single seller

• Multiple sellers

In a monopoly, what is the nature of the demand curve?

• Downward sloping

• Upward sloping

• Perfectly inelastic

• Perfectly elastic

What is a characteristic of monopolistic competition?

• Single seller

• Homogeneous products

• Differentiated products

• No selling costs

How do firms in monopolistic competition differentiate themselves?

• By offering homogeneous products

• By restricting entry

• Through non-price competition

• By setting lower prices

What is a defining feature of a monopsony?

• Multiple buyers

• Single buyer

• Multiple sellers

• Free entry and exit

In a duopoly, how many sellers are there?

• One

• Two

• Many

• Three

Which market structure is known for having a kinked demand curve?

• Perfect competition

• Monopoly

• Monopolistic competition

• Oligopoly