CH 1.0 Flashcards
(5 cards)
What is market structure?
The nature and degree of competition among busineses operating in the same industry.
What is perfect competition?
Where there are alot of producers each selling a homogenized product. Therefore do not make the price for their products.
easy entrance and exit.
What is Monopalistic Competition:
Many producers produce differentiated products and therefore can price their products to a degree.
Relatively easy exit and entry.
What is a oligopoly?
a market structure in which there are relatively few sellers, each having an opportunity for a degree of market control.
Most have inelastic demand.
difficult to enter the market and the products are differentiated.
What is a Monopoly?
One firm selling a product where there are barriers to entry.
Producers have considerable control over price.
