Podcast
Questions and Answers
Which helps enable an oligopoly to form within a market? (Select all that apply)
Which helps enable an oligopoly to form within a market? (Select all that apply)
- The government restricts market entry.
- Costs of starting a competing business are too high. (correct)
- No competition exists between producers.
- The number of options in a market confuses consumers.
Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?
Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?
- De facto monopoly
- Government monopoly
- Natural monopoly
- Technological monopoly (correct)
In the United States, which type of industry is often considered part of an oligopoly?
In the United States, which type of industry is often considered part of an oligopoly?
- Mail delivery services
- Electric companies
- Denim companies
- Cell phone carriers (correct)
______ is the term used to describe the amount of control or influence that consumers have on a market.
______ is the term used to describe the amount of control or influence that consumers have on a market.
In an oligopolistic market, consumer choice is
In an oligopolistic market, consumer choice is
Why is the automobile industry considered an oligopoly? (Select all that apply)
Why is the automobile industry considered an oligopoly? (Select all that apply)
Why is competition limited in an oligopoly?
Why is competition limited in an oligopoly?
Natural monopolies occur when one producer
Natural monopolies occur when one producer
The market for which item generally involves pure competition?
The market for which item generally involves pure competition?
In pure competition, producers compete exclusively on the basis of
In pure competition, producers compete exclusively on the basis of
Study Notes
Market Structures and Competition
- Oligopolies form when high startup costs make it difficult for new competitors to enter the market.
- Technological monopoly occurs when a company, like Wellness Pharmaceuticals with Lexabuzac, has exclusive control over a product due to unique technology.
- In the U.S., cell phone carriers exemplify an industry that operates within an oligopoly.
- Consumer sovereignty refers to the influence that consumers have over market dynamics.
- In an oligopolistic market, consumer choice is typically limited due to the dominance of a few firms.
- The automobile industry is characterized as an oligopoly because it has significant barriers to entry, relies on brand loyalty, and is controlled by a few key players.
- Limited competition in oligopolies is often due to high entry costs that deter new producers from entering the market.
- Natural monopolies exist when a single producer can meet the entire market's demand efficiently.
- The market for corn generally exemplifies pure competition where many producers sell identical products.
- In pure competition, the focus for producers is on selling identical items, minimizing differentiation.
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Test your understanding of market structures and competition with these flashcards. Each card covers essential concepts such as oligopolies and monopolies, helping you master the key terms and definitions. Perfect for students and professionals alike!
