1 - Introduction

Question 1

What are Actors?

1.
2.
3.

Answer 1

• economic agents
• e.g. households, mainly as consumers
• e.g. firms, mainly as producers

Question 2

What is the effect of the following market structures:

1. competitive markets?
2. monopoly?
3. monopolistically competitive markets?
4. oligopoly?

Answer 2

1. when many small suppliers offer the same product
2. when a single large supplier is the only supplier
3. when many suppliers offer similar products
4. when few suppliers keep an eye on each other