CH 1.0 Flashcards
What is market structure?
The nature and degree of competition among busineses operating in the same industry.
What is perfect competition?
Where there are alot of producers each selling a homogenized product. Therefore do not make the price for their products.
easy entrance and exit.
What is Monopalistic Competition:
Many producers produce differentiated products and therefore can price their products to a degree.
Relatively easy exit and entry.
What is a oligopoly?
a market structure in which there are relatively few sellers, each having an opportunity for a degree of market control.
Most have inelastic demand.
difficult to enter the market and the products are differentiated.
What is a Monopoly?
One firm selling a product where there are barriers to entry.
Producers have considerable control over price.
