market structures

• What is perfect competition?

  A market structure with many buyers and sellers
• What are the characteristics of oligopoly?

  1. Few sellers
  2. High barriers to entry
  3. Interdependence
  4. Price competition or collusion
  5. Non-price competition
• How do firms in an oligopoly interact?

  They are interdependent and affect each other's actions
• What are the barriers to entry in an oligopoly?

  High barriers prevent new businesses from entering
• What is an oligopoly?

  A market with a small number of dominant firms
• What are the characteristics of monopolistic competition?

  1. Several sellers
  2. Differentiated products
  3. Low barriers to entry
  4. Some price control
  5. Non-price competition
• What is non-price competition in monopolistic competition?

  Using advertising and branding to attract customers
• What does "differentiated products" mean in monopolistic competition?


  Each seller offers unique products
• What is monopolistic competition?

  A blend of perfect competition and monopoly
• How does monopolistic competition differ from perfect competition?

  It has differentiated products
• What are the key characteristics of a monopoly?

  1. Single seller
  2. High barriers to entry
  3. Price control
  4. Limited consumer choice
  5. No substitute products
• How does perfect competition ensure market efficiency?

  By minimizing price differences
• What is a monopoly?

  A market with only one seller
• What are high barriers to entry in a monopoly?

  Obstacles preventing new companies from entering
• How does a monopolist control prices?

  By being the only seller in the market
• What is the impact of a monopoly on consumer choice?


  It limits consumer choice
• What are the five characteristics of perfect competition?

  1. Many buyers and sellers
  2. Homogeneous products
  3. Free entry and exit
  4. Perfect information
  5. No barriers to entry
• What are barriers to entry in a market?

  Obstacles preventing new firms from joining
• What does perfect information imply in a perfect competition market?

  All buyers and sellers have complete knowledge
• Why is free entry and exit important in perfect competition?


  It allows businesses to easily join or leave
• What does "homogeneous products" mean in perfect competition?


  All goods are identical