a. Costs of starting a competing business are too high.
b. The government restricts market entry.
c. The number of options in a market confuses consumers.
d. No competition exists between producers.
a. natural monopoly
b. de facto monopoly
c. government monopoly
d. technological monopoly
a. electric companies
b. cell phone carriers
c. mail delivery services
d. denim companies
a. Sovereignty
b. Competition
c. Oligopoly
a. nonexistent.
b. limited.
c. extensive.
d. infinite.
a. It offers little differentiation within the market.
b. It has significant barriers to entry.
c. It is controlled by companies that patent key technology.
d. It relies on price variation to attract customers.
e. It depends on brand loyalty and image to generate sales.
f. It is dominated by a few key players.
e. It depends on brand loyalty and image to generate sales.
f. It is dominated by a few key players.
a. High entry costs prevent new producers from entering the market.
b. Producers completely refuse to engage in price wars.
c. No major distinctions exist between producers.
d. Producers actively segment the market to avoid competition.
a. can meet the market’s entire demand.
b. controls the method of production.
c. is the only one authorized to produce a given product.
d. creates unique products.
a. cola
b. corn
c. jeans
d. ice cream
a. selling identical items.
b. advertising heavily to promote their good.
c. producing the unique features of their good.
d. focusing on maintaining a positive image.
Which helps enable an oligopoly to form within a market?
Costs of starting a competing business are too high.
The government restricts market entry.
The number of options in a market confuses consumers.
No competition exists between producers.
Why is the automobile industry considered an oligopoly?
It offers little differentiation within the market.
It has significant barriers to entry.
It is controlled by companies that patent key technology.
It relies on price variation to attract customers.
It depends on brand loyalty and image to generate sales.
It is dominated by a few key players.
It has significant barriers to entry.
It depends on brand loyalty and image to generate sales.
It is dominated by a few key players.
Wellness Pharmaceuticals has released a new antidepressant, Lexabuzac. Which type of monopoly does the company most likely have on this medication?
natural monopoly
de facto monopoly
government monopoly
technological monopoly
The market for which item generally involves pure competition?
cola
corn
jeans
ice cream
Why is competition limited in an oligopoly?
High entry costs prevent new producers from entering the market.
Producers completely refuse to engage in price wars.
No major distinctions exist between producers.
Producers actively segment the market to avoid competition.
In pure competition, producers compete exclusively on the basis of
sell identical items.
advertise heavily to promote their good.
product the unique features of their good.
focus on maintaining a positive image.
If consumer sovereignty is considered greatest in a system of pure competition, why is sovereignty still limited?
Consumers still rely on producers’ set prices.
Few products are actually sold on the basis of pure competition.
Choices are driven by price when goods are identical.
Limited price variations restrict actual choice.
Which best describes the availability of substitutes in a monopoly?
Price points vary.
There are no substitutes.
There are different brands.
Products have different features.
Who sets the price in a monopolistic competition?
producers and consumers
consumers only
government
producers only
When an oligopoly exists, how many producers dominate the market?
none
one
a few
many
Natural monopolies occur when one producer
can meet the market’s entire demand.
controls the method of production.
is the only one authorized to produce a given product.
creates unique products.
___________ is the type of competition that occurs in a competitive market without identical producers.
monopolistic
pure competition
an oligopoly
__________ Is the term used to describe the amount of control or influence that consumers have on a market.
sovereignty
competition
oligopoly
Which best describes how the government enables government monopolies to exist?
by issuing a patent
by allowing natural monopolies to exist
by creating and running a monopoly
by owning the means of production
