Spectrum of Competition Flashcards
(7 cards)
1
Q
What is the order of the spectrum of competition?
A
Perfect competition, monopolistic competition, oligopoly, monopoly, monopsony.
2
Q
What is perfect competition?
A
An ideological market composed of homogenous goods with infinate buyers and sellers, with no barriers to entry / exit.
3
Q
What is monopoolistic competition?
A
The same structure as perfect competition but with heterogenous goods.
4
Q
What is an oligopoly?
A
A market structure in which the top 3-5 firms share at least 60% of the market share.
5
Q
What is a monopoly?
A
Where there is one singular dominant firm in the market, which can supply at lower costs than multiple firms could.
6
Q
What is a monopsony?
A
Where there is one singular buyer in the market.
7
Q
What is a natural monopoly?
A
Where the monpoly
