1. Economics 1

Question 1

For PERFECT COMPETITION
Number of sellers?
Barriers to entry?
Nature of substitute products?
Nature of competition?
Price power (pouvoir de fixation des prix)?

Answer 1

Number of sellers: Many firms
Barriers to entry: Very low
Nature of substitute products: Very good substitutes
Nature of competition: Price only
Price power: None

Question 2

For MONOPOLISTIC COMPLETITION
Number of sellers?
Barriers to entry?
Nature of substitute products?
Nature of competition?
Price power (pouvoir de fixation des prix)?

Answer 2

Number of sellers: Many firms
Barriers to entry: Low
Nature of substitute products: Good substitutes, but differentitated
Nature of competition: Price, marketing, features
Price power: Some

Question 3

For OLIGOPOLY
Number of sellers?
Barriers to entry?
Nature of substitute products?
Nature of competition?
Price power (pouvoir de fixation des prix)?

Answer 3

Number of sellers: few firms
Barriers to entry: High
Nature of substitute products: Good substitutes, but differentitated
Nature of competition: Price, marketing, features
Price power: Some to significant

Question 4

For MONOPOLY
Number of sellers?
Barriers to entry?
Nature of substitute products?
Nature of competition?
Price power (pouvoir de fixation des prix)?

Answer 4

Number of sellers: Single firms
Barriers to entry: Very high
Nature of substitute products: No good substitutes
Nature of competition: Advertising
Price power: Significant