Chapter 16 Flashcards
1
Q
monopolistic competition
A
many sellers
product differentiation
free entry and exit
2
Q
oligopoly
A
few sellers, similar or identical products
3
Q
excess capacity
A
firm can produce more at a lower cost but they hold back production
4
Q
monopoly
A
1 firm
5
Q
perfect competition
A
many firms, similar products
6
Q
mark-up
A
the amount added to the cost price price of goods to cover overheads and profits (perfect competition p=mc)
7
Q
externalities of entry
A
product-variety (positive externality on consumers, get more products)
business-stealing (negative externality on existing firms)
