Podcast
Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App
Questions and Answers
What is a characteristic of perfect competition?
What is a characteristic of perfect competition?
- Single seller of a product
- Homogeneous products (correct)
- Barriers to entry
- Few sellers of homogeneous products
Which type of market structure has a single seller of a product?
Which type of market structure has a single seller of a product?
- Monopolistic competition
- Perfect competition
- Monopoly (correct)
- Oligopoly
What is a characteristic of oligopoly?
What is a characteristic of oligopoly?
- No pricing power
- Free entry and exit
- Interdependent decision-making (correct)
- Many sellers of differentiated products
Which type of market structure has many firms producing differentiated products?
Which type of market structure has many firms producing differentiated products?
Signup and view all the answers
What is a characteristic of monopoly?
What is a characteristic of monopoly?
Signup and view all the answers
Which type of market structure has no pricing power?
Which type of market structure has no pricing power?
Signup and view all the answers
Flashcards are hidden until you start studying
Study Notes
Types of Market Structures
Perfect Competition
- Large number of buyers and sellers
- Homogeneous products
- Free entry and exit
- Perfect information
- No single firm has influence on market price
Monopoly
- Single seller of a product
- No close substitutes
- Barriers to entry
- Firm has significant influence on market price
Monopolistic Competition
- Many sellers of differentiated products
- Free entry and exit
- Non-price competition (advertising, product differentiation)
- Firm has some influence on market price
Oligopoly
- Few sellers of either homogeneous or differentiated products
- Interdependent decision-making
- Barriers to entry
- Firm has significant influence on market price
Characteristics of Market Structures
Number of Firms
- Perfect competition: many firms
- Monopoly: one firm
- Monopolistic competition: many firms
- Oligopoly: few firms
Product Differentiation
- Perfect competition: homogeneous products
- Monopoly: homogeneous products
- Monopolistic competition: differentiated products
- Oligopoly: either homogeneous or differentiated products
Barriers to Entry
- Perfect competition: no barriers
- Monopoly: high barriers
- Monopolistic competition: low barriers
- Oligopoly: high barriers
Pricing Power
- Perfect competition: no pricing power
- Monopoly: significant pricing power
- Monopolistic competition: some pricing power
- Oligopoly: significant pricing power
Market Structures
Perfect Competition
- Characterized by a large number of buyers and sellers
- Products are homogeneous
- Firms can freely enter and exit the market
- Buyers and sellers have perfect information
- No single firm has influence on market price
Monopoly
- Single seller of a product with no close substitutes
- Barriers to entry prevent other firms from entering the market
- Firm has significant influence on market price
Monopolistic Competition
- Many sellers of differentiated products
- Firms can freely enter and exit the market
- Non-price competition through advertising and product differentiation
- Firm has some influence on market price
Oligopoly
- Few sellers of either homogeneous or differentiated products
- Interdependent decision-making among firms
- Barriers to entry prevent other firms from entering the market
- Firm has significant influence on market price
Characteristics of Market Structures
Number of Firms
- Perfect competition: many firms
- Monopoly: one firm
- Monopolistic competition: many firms
- Oligopoly: few firms
Product Differentiation
- Perfect competition: homogeneous products
- Monopoly: homogeneous products
- Monopolistic competition: differentiated products
- Oligopoly: either homogeneous or differentiated products
Barriers to Entry
- Perfect competition: no barriers
- Monopoly: high barriers
- Monopolistic competition: low barriers
- Oligopoly: high barriers
Pricing Power
- Perfect competition: no pricing power
- Monopoly: significant pricing power
- Monopolistic competition: some pricing power
- Oligopoly: significant pricing power
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
