Chapter 7

Question 1

Perfect competition

Answer 1

Ideal model of s market economy

Question 2

Imperfect competition

Answer 2

Market structure lacks one or more of the conditions needed for perfect competition

Question 3

Monopoly

Answer 3

Market structure in which only one seller sells a product for which there are no close substitutes

Question 4

Geographic monopoly

Answer 4

Monopoly that exists because there are no other producers or sellers within a certain region

Question 5

Government monopoly

Answer 5

Monopoly exists because the government either owns and runs the business or authorize only one producer

Question 6

Natural monopoly

Answer 6

Market situation in which the costs of production are lowest when only one girl supplies a product or service

Question 7

Technological monopoly

Answer 7

Monopoly exists because a firm controls a manufacturing method, invention, or type of technology

Question 8

Antitrust legislation

Answer 8

Laws that define monopolies and give government the power to control or dissolve them

Question 9

Merger

Answer 9

Combining of two or more companies to form a single company

Question 10

Deregulation

Answer 10

Reduction or elimination of government oversight and control of business

Question 11

Standardized products

Answer 11

Product that a consumer considers identical on all essential features to other products in the same market