10 Market Structures Flashcards

1
Q

audience that you intend to buy your product

A

target market

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2
Q

bridge the gap between the product and the target market

A

marketing department

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3
Q

location where consumers purchase a producer’s roducts

A

supermarket

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4
Q

mechanism/arrangement where buyers and sellers interact (exchange goods)

A

market

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5
Q

decide price and quantity; both buyers and sellers must agree

A

market

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6
Q

no single seller/buyer can have significant effect

A

perfect competition

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7
Q

you take whatever the market price is

A

price taker

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8
Q

products are identical, homogeneous, fully substitutable

A

perfect competition

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9
Q

no constraints in entering/exiting the market, because there are an infinite number of producers

A

perfect competition

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10
Q

implies that everyone knows everything about the product; there are no opportunities of arbitrage (resellers)

A

perfect information

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11
Q

intense competition

A

monopolistic competition

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12
Q

combo of monopoly and perfect competition

A

monopolistic competition

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13
Q

buyers and sellers can easily enter and exit the market

A

monopolistic competition

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14
Q

relatively few sellers that are interdependent

A

oligopoly

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15
Q

very strong barriers to entry and exit

A

oligopoly

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16
Q

products have few substitutes

17
Q

group of producers that cooperate instead of compete to seek higher profit and control quantity and price

18
Q

any type of illegal conspiracy/intent to defraud customers

19
Q

dominant firm makes pricing decision for the rest of the market

A

price leadership

20
Q

firms break out of price leadership model and begin undercutting each other’s prices

A

price wars

21
Q

firms compete on the basis of product differentiation, not price

A

product differentiation

22
Q

only one seller; no competition

23
Q

products have no immediate substitute

24
Q

many barriers involved in entering the market

25
ownership of essential input and supply chain; high cost for capital
structural barriers
26
monopolist discourages entry of new firms
strategic barriers
27
franchise, patents, copyright
legal barriers
28
inventions
patents
29
intellectual property
copyright
30
people are forced to buy from you
price maker