Chap 2- Part 3

Question 1

What is a monopoly

Answer 1

A form of competition where there is only one provider of a service or product and no substitutes for the product exist

Question 2

What are the four degree of competition

Answer 2

Monopoly
Oligopoly
Monopolistic competition
Perfect competition

Question 3

What is a natural monopolistic

Answer 3

Monopolies that include public utilities, such as those who sell gas or water.

Question 4

What are legal monopolies

Answer 4

Monopolies that occur when a company receives a patent giving it exclusive use an invented product

Question 5

What is oligopoly

Answer 5

A form of conpetition in which only a few sellers meet

Question 6

Monopolistic competition

Answer 6

A form of competition where there are many buyers and sellers and little differentiation between the products but consumers perceive there to be difference so they favor one product to another

Question 7

What is a perfect competition

Answer 7

A form of competition where there are many buyers and sellers of products that are virtually identical, and any seller can easily enter and exit the market