CH 18 Compedetive markets Flashcards
1
Q
What are barries to entry?
A
Obstacles that might discourage a firm from entering the market
2
Q
What are the features to a compedetive market?
A
-A large numbers of buyers and sellers
-The products sold by each firm are close substitutes for eachother
-There are low barriers to entry
3
Q
What are the advantags of a compedetive market on the consumers?
A
-Lower prices
-More choice
-Better quality goods
4
Q
What are the disadvantages of a compedetive market on the consumers?
A
-Market uncertainty
-Lack of innovation
5
Q
What are the advantages of a competitive market on the economy?
A
-Resources will be alocated more efficiently
-Better standard of living due to innovation
6
Q
What are the disadvantages of a compedetive market on the economy?
A
-Resources might get wasted
