Podcast
Questions and Answers
Which best describes the availability of substitutes in a monopoly?
Which best describes the availability of substitutes in a monopoly?
- There are many substitutes.
- Substitutes are not relevant.
- There are a few substitutes.
- There are no substitutes. (correct)
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?
- Geographic monopoly
- Technological monopoly (correct)
- Natural monopoly
- Market monopoly
The market for which item generally involves pure competition?
The market for which item generally involves pure competition?
- Soybeans
- Wheat
- Oil
- Corn (correct)
Which best describes how the government enables government monopolies to exist?
Which best describes how the government enables government monopolies to exist?
Who sets the price in a monopolistic competition?
Who sets the price in a monopolistic competition?
The lack of competition within a monopoly means that
The lack of competition within a monopoly means that
Why is competition limited in an oligopoly?
Why is competition limited in an oligopoly?
Which is an example of a government monopoly in the United States?
Which is an example of a government monopoly in the United States?
______________ 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.
Why is the automobile industry considered an oligopoly?
Why is the automobile industry considered an oligopoly?
When an oligopoly exists, how many producers dominate the market?
When an oligopoly exists, how many producers dominate the market?
____________ is the type of competition that occurs in a competitive market without identical producers.
____________ is the type of competition that occurs in a competitive market without identical producers.
In pure competition, producers compete exclusively on the basis of
In pure competition, producers compete exclusively on the basis of
Natural monopolies occur when one producer
Natural monopolies occur when one producer
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?
Which best describes how the government sanctions technological monopolies?
Which best describes how the government sanctions technological monopolies?
Flashcards
Monopoly Substitutes
Monopoly Substitutes
In a monopoly, there are no close substitutes for the product.
Technological Monopoly
Technological Monopoly
A monopoly based on control of a unique technology or process.
Pure Competition Example
Pure Competition Example
Corn farming is generally considered a market with pure competition.
Government Monopoly Creation
Government Monopoly Creation
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Monopolistic Competition Price
Monopolistic Competition Price
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Monopoly Pricing Power
Monopoly Pricing Power
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Oligopoly Entry Barriers
Oligopoly Entry Barriers
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US Government Monopoly
US Government Monopoly
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Consumer Market Sovereignty
Consumer Market Sovereignty
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Automobile Industry Type
Automobile Industry Type
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Oligopoly Producer Count
Oligopoly Producer Count
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Monopolistic Competition Definition
Monopolistic Competition Definition
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Pure Competition Basis
Pure Competition Basis
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Natural Monopoly
Natural Monopoly
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Oligopoly Industry Example
Oligopoly Industry Example
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Technological Monopoly Government Sanction
Technological Monopoly Government Sanction
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Study Notes
Market Structures Overview
- A monopoly is characterized by the absence of substitutes for the product offered.
- Technological monopolies arise when a company possesses unique advancements, exemplified by Wellness Pharmaceuticals and its antidepressant Lexabuzac.
Competition Types
- Pure competition typically occurs in markets dealing with homogeneous goods, such as corn.
- Monopolistic competition involves numerous producers who influence prices collaboratively.
Government and Monopolies
- Governments may create and operate monopolies, ensuring exclusivity in certain services, like the US Postal Service.
- Technological monopolies receive government support in the form of patents, granting the innovator exclusive rights to the technology.
Oligopoly Dynamics
- Oligopolies feature limited competition due to high market entry costs, which deter new entrants.
- The automobile industry exemplifies an oligopoly because of substantial barriers to entry, brand loyalty significance, and dominance by a few key players.
Market Control
- In monopolistic markets, monopolists have the power to set prices due to the lack of competition.
- A general term for consumer influence over market conditions is "sovereignty."
- In markets characterized by oligopoly, a few producers typically dominate.
Types of Competition
- Monopolistic competition exists among non-identical producers, allowing for product differentiation.
- In pure competition, producers compete solely based on selling identical goods.
Natural Monopolies
- Natural monopolies emerge when a single producer can satisfy the entire market demand efficiently, reducing redundancy in supply.
Oligopoly Examples
- Cell phone carriers in the United States are frequently cited as examples of industries operating under oligopoly conditions.
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