a market structure that occurs when there is only one seller of a product that has no close substitutes -least competitive market structure cartel a group that acts together to set prices and limit output price maker a business that does not have to consider competitors when setting the prices of its products -consumers either buy or choose not to
both buyers and sellers know the market prices and other conditions independent buyers and sellers buyers and sellers do not band together to influence prices monopoly a market structure that occurs when there is only one seller of a product that has no close substitutes -least competitive market structure
a market structure that occurs when there is only one seller of a product that has no close substitutes -least competitive market structure cartel a group that acts together to set prices and limit output
List the 4 different types of market structure from MOST to LEAST competitive 1. perfect competition 2. monopolistic competition 3. oligopoly 4. monopoly What does the antitrust law prohibit? monopolies and unfair business practices Explain why economics of scale is used to justify natural monopolies? economies of scale = mass production
Key TakeawaysPerfect competition is an ideal type of market structure where all producers and consumers have full and symmetric information and no transaction costs.There are a large number of producers and consumers competing with one another in this kind of environment.More items...
monopolyIn a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power. Consumers do not have any alternative and must pay the price set by the seller. Monopolies are extremely undesirable.
Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.
In perfect competition, firms produce identical goods, while in monopolistic competition, firms produce slightly different goods. C) Perfect competition has no barriers to entry, while monopolistic competition does.
In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don't sell identical products. Instead, they sell differentiated products—products that differ somewhat, or are perceived to differ, even though they serve a similar purpose.
Households and firms interact in two types of markets. In the markets for goods and services, households are buyers and firms are sellers. In particular, households buy the output of goods and services that firms produce. In the markets for the factors of production, households are sellers and firms are buyers.
Quick Reference to Basic Market StructuresMarket StructureSeller Entry & Exit BarriersNumber of sellersMonopolyYesOneDuopolyYesTwoOligopolyYesFewMonopsonyNoMany3 more rows
A monopoly is a market with only one producer, a duopoly has two firms, and an oligopoly consists of two or more firms.
An oligopoly is defined as a market structure with few firms and barriers to entry. Oligopoly = A market structure with few firms and barriers to entry. There is often a high level of competition between firms, as each firm makes decisions on prices, quantities, and advertising to maximize profits.
The correct answer is: c) Monopoly.
Oligopolies are price setters rather than prices takers. High barriers to entry and exit. The most important barriers are government licenses, economies of scale, patents, access to expensive and complex technology, and strategic actions by incumbent firms designed to discourage or destroy nascent firms.
monopolyA monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods. In both cases, significant barriers to entry prevent other enterprises from competing.