Chapter 11 Flashcards
What demand a perfect competitor has, and what other market structures
A perfectly elastic demand
In all other market structures suppliers face a downward-sloping demand
What is imperfectly competitive firms
face a downward-sloping demand curve, and their output price reflects the quantity sold.
Something in between monopoly and perfect competition
Is the demand curve for the firm and for the industry is the same?
No, this is the case only in monopoly
What is an oligopoly
defines a market with a small number of suppliers
What does it mean monopolistic competition
defines a market with many sellers of products that have similar characteristics. Monopolistically competitive firms can exert only a small influence on the whole market.
Canada’s universities all provide degrees, but the institutions differ one from another in their programs,
What is a duopoly
defines a market or sector with just two firms.
What is the crucial determinant of market structure
minimum efficient scale relative to the size of the total market
The larger the minimum efficient scale relative to market size, the smaller is the number of producers in the industry.
