Types Of Markets Flashcards
(19 cards)
What is a market?
A market is a place or system where buyers and sellers interact to exchange goods and services.
True or False: A perfect competition market has many buyers and sellers with identical products.
True
Fill in the blank: In a _______ market, a single seller dominates the market.
monopoly
What characterizes an oligopoly market?
An oligopoly market is characterized by a few large sellers who dominate the market and have the ability to influence prices.
Multiple Choice: Which of the following is NOT a type of market structure? A) Perfect Competition B) Monopoly C) Monopolistic Competition D) Random Market
D) Random Market
What is monopolistic competition?
Monopolistic competition is a market structure where many firms sell products that are similar but not identical.
True or False: In a perfect competition market, firms can set their own prices.
False
Fill in the blank: A _______ market is characterized by a large number of buyers and sellers, where no single entity can influence the market price.
perfect competition
What is the main feature of a monopoly?
The main feature of a monopoly is that there is only one seller in the market.
Multiple Choice: Which market structure allows for product differentiation? A) Perfect Competition B) Monopoly C) Monopolistic Competition D) Oligopoly
C) Monopolistic Competition
What is an example of an oligopoly?
Examples of an oligopoly include the automobile industry and the airline industry.
True or False: In a monopoly, consumers have many choices for products.
False
Fill in the blank: An _______ market has few sellers who control a significant portion of the market share.
oligopoly
What is price elasticity in the context of market types?
Price elasticity refers to how sensitive the quantity demanded of a good is to a change in its price.
Multiple Choice: Which type of market is characterized by many firms competing with similar but not identical products? A) Monopoly B) Perfect Competition C) Monopolistic Competition D) Oligopoly
C) Monopolistic Competition
What is the primary goal of firms in a competitive market?
The primary goal of firms in a competitive market is to maximize profits.
True or False: In an oligopoly, firms may collude to set prices.
True
Fill in the blank: The _______ market structure is considered the most efficient in resource allocation.
perfect competition
What is a distinguishing feature of a monopolistic competition market?
A distinguishing feature of monopolistic competition is that firms can differentiate their products.
