Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

BASIC MICROECONOMICS > Market Structures > Flashcards

Market Structures Flashcards

1
Q

means that a person knows the price of a commodity being charged in the markets.

A

Perfect knowledge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

There is large number of sellers and buyers of the commodity each too small to affect the price of the commodity;
The outputs of all firms in the market are homogeneous
There is perfect mobility of resources.

A

Pure Competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The demand curve of pure competition is still ____________.

A

downward sloping

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Referring to a time period in which a firm can vary its output but does not have time to change its plant size. The number of firms in an industry is fixed because new

A

The Short Run

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

are a pure surplus or an excess of total receipts over all costs of production incurred by the firm.

A

ECONOMIC PROFIT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

the additional cost incurred when additional units of products are produced.

A

Marginal Cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

the additional revenue obtained by putting additional revenue obtained by putting additional units of output in the market.

A

Marginal revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Demand under ATC=

A

Loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Demand over ATC =

A

Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Refers to the price that would force the producer to stop production because of losses.

A

The Shutdown Price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When enough firms go out of business, industry supply declines, which pushes price up.

A

Long Run: Breakeven

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Refers to the situation toward which the market price and output and the short-run equilibrium price and output tend in a period of time long enough

A

Price and Output in the Long-run

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

is a market where one firm (or manufacturer) is the sole supplier of certain goods or services. This firm faces no competition due to which it can set its own prices, thereby exercising full control over the market.

A

monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Characteristics of Monopoly

A
  1. Single Seller
  2. No Close Substitutes
  3. Control Over Price
  4. No Entry
  5. No difference between Firm and Industry
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Demand Curve
under Monopoly
is the ________

A

market demand curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

is a pricing strategy used by businesses to charge different prices for the same product or service based on each customer’s willingness to pay.

A

Price discrimination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

when a single privately-owned company controls a particular market niche to the extent that they wield significant power and influence over the market.

A

Private Monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

is a single seller in a market or sector with high barriers to entry such as significant startup costs whose product has no substitutes.

A

Pure Monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

occurs when a single company can provide goods or services to the entire market at a lower cost than two or more competing firms.

A

Natural Monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

It happens when the government assumes exclusive control over an industry or service to provide citizens with essential goods and services that are necessary for the public good.

A

Public Monopolies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

the “founding father” of the theory of monopolistic competition is

A

Edward Hastings Chamberlin

22
Q

Refers to the competitive environment in which buyers and sellers operate.

A

Market Structure

23
Q

a market organization in which there is a relatively large number of small firms, producing homogeneous products with close substitutes.

A

Monopolistic Competition

24
Q

Does not require the presence of thousands or millions of firms or producers but only a fairly large number.

A

Monopolistic Competition

25
Q

Does not require the presence of thousands or millions of firms or producers but only a fairly large number.

A

Monopolistic Competition

26
Q

Requires hundreds, thousands, or even millions of producers.

A

Pure Competition

27
Q

It has zero economic profit in the long run or for other term

A

Normal Profit

28
Q

when producers turn out variations or close substitutes of a oftiven product.
it makes the products sold by one seller somewhat different from the product sold by another.

A

Product DIFFERENTIATION

29
Q

differences can exist thru effective use of advertising, packaging, trademarks & brand names.

A

IMAGINARY

30
Q

can exist when functional features, material, design are important.

A

REAL

31
Q

Losses will be minimized at the point where

A

marginal cost = marginal
revenue.

32
Q

In the short-run, firms in monopolistic competition determine their price and output levels based on their marginal revenue and marginal cost.

A

Short-run Equilibrium

33
Q

SLOPE OF THE DEMAND CURVE OF PERFECT COMPETITION

A

Horizontal straight line
AR=MR

34
Q

SLOPE OF THE DEMAND CURVE OF MONOPOLISTIC COMPETITION

A

Downward slopping flatter
AR>MR

35
Q

an example of collusion in its most complete form which purpose is monopolistic maximization of industry profits by the few firms in the industry

A

Centralized Cartel

36
Q

a formal organization of producers within a given industry

A

Cartel

37
Q

rigid or “sticky” prices common in oligopoly; particularly sticky downward since firms in oligopoly normally do not lower their prices.

A

Kinked Demand Curve

38
Q

a secret agreement between two or more persons or institutions to achieve certain objectives among the industry’s firms

A

Collusion

39
Q

is a market structure characterized by a small number of firms and a great deal of interdependence among them.

A

Oligopoly

40
Q

This is the market structure that lies between perfect competition and monopoly.

A

Oligopoly

41
Q

exists in industries with nonhomogeneous products, like the car and appliance industries.

A

Differentiated oligopoly

42
Q

exists in industries with nonhomogeneous products, like the car and appliance industries.

A

Differentiated oligopoly

43
Q

exists when firms produce identical products. It’s common in some capital goods industries like cement and oil.

A

Pure oligopoly

44
Q

is condition in which the competition prevails among the group of sellers in the industry.

A

SELF INTEREST

45
Q

is a situation in which firms under the market create either collusion or cartel.

A

COOPERATION

46
Q

occurs when firms in the market agree to coordinate their pricing decisions to some degree, but not to the point of acting as a single monopoly.

A

Imperfect Collusion

47
Q

occurs when all firms in the market agree to act as a single monopoly. This means that they will all charge the same price, which will be the monopoly price.

A

Perfect Collusion

48
Q

Made up mostly of tacit informal arrangements under which the firms of an industry seek to establish prices and outputs.

A

Imperfect Collusion

49
Q

In the The Kinked Demand Curve, If the firm _________ its price,it operates on the _________ part of the demand curve. If the price __________ it will operates on the ___________ side of demand curve.

A

Increases-elastic, Decreases-Inelastic

50
Q

A well known theory designed to explain the rigidly of prices in oligopolistic markets was advanced by

A

Paul Sweezy

BASIC MICROECONOMICS (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions