Market Structures and Competition Flashcards

Questions and Answers

In the United States, which type of industry is often considered part of an oligopoly?

Local grocery stores

Bakeries

Cell phone carriers (correct)

Oil companies

Who sets the price in a monopolistic competition?

Producers only

___________ is the term used to describe the amount of control or influence that consumers have on a market.

Sovereignty

Which type of monopoly does Wellness Pharmaceuticals most likely have for lexabuzac?

Technological monopoly Signup and view all the answers

What aspect of monopolistic competition gives consumers more choice?

Few barriers to market entry exist Signup and view all the answers

What does the lack of competition within a monopoly mean?

Monopoly set their own prices Signup and view all the answers

In pure competition, producers compete exclusively on the basis of what?

Selling identical items Signup and view all the answers

In an oligopolistic market, the consumer's choice is generally what?

Limited Signup and view all the answers

Which is an example of a government monopoly in the United States?

The US Postal Service Signup and view all the answers

Why is the automobile industry considered an oligopoly?

It offers little differentiation within the market and has significant barriers to entry. Signup and view all the answers

Study Notes

Market Structures and Competition

In the U.S., cell phone carriers are commonly viewed as part of an oligopoly, characterized by a few dominant firms.
In monopolistic competition, producers have the ability to set prices independently while competing with similar products.
Consumer sovereignty refers to the power that consumers possess to shape market dynamics through their choices and preferences.
Technological monopolies exist when a company, such as Wellness Pharmaceuticals with its antidepressant lexabuzac, holds exclusive control over a product due to unique technology or innovation.
Monopolistic competition provides consumers with more choices primarily because there are few barriers to market entry.
In a monopoly, the absence of competition allows the entity to set its own prices without external pressure.
In a pure competition market structure, producers compete by selling identical products, emphasizing price over brand differentiation.
Consumers face limited choices in an oligopolistic market, where a few firms dominate and influence the market.
An example of a government monopoly in the U.S. is the United States Postal Service, which operates without direct competition.
The automobile industry is classified as an oligopoly due to its minimal product differentiation, significant barriers to entry, and dependence on brand loyalty to drive sales.

Description

Test your understanding of market structures with these flashcards. Explore various types of industries, pricing strategies, and consumer influence in economic markets. Perfect for students looking to enhance their knowledge in microeconomics.