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Health Economics > Chapter 9: Market Structure in the Health Sector > Flashcards

Chapter 9: Market Structure in the Health Sector Flashcards

1
Q

Any place at which the individual needing medical and non-medical goods and services can communicate with the one producing medical and non-medical goods and services.

A

Market

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2
Q

Three things to consider with Market

A
  1. Types of goods and services being traded
  2. The number and size of buyers and sellers in the market
  3. The degree to which information can flow freely
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3
Q

What are the four types of Market

A
  1. Perfect Competition
  2. Monopolistic Competition
  3. Oligopoly
  4. Monopoly
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4
Q

Does not exist in the real world and can only be examined through perfect competition

A

Perfect/Pure Market

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5
Q

It is an abstract concept or model and involves necessary conditions

A

Perfect Competition

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6
Q

Two critical Assumptions that build Perfect Competition

A
  1. The behavior of an individual firm

2. the nature of an industry in which it operates

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7
Q

What is the principal aim of a firm

A

Maximize profits

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8
Q

The demand curve faced by firms is _______

A

Horizontal

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9
Q

When the price of the product is CONSTANT, the change in total revenue is ____ to price

A

Equal

P=MR

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10
Q

The firm will maximize profits by producing at the level of output where Marginal Revenue is _____ to Marginal Cost

A

Equal

MR = MC

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11
Q

A market situation where in the conditions necessary for perfect competitions are not satisfied.

A

Imperfect Market

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12
Q

Forms of Imperfect Market

A

Monopoly
Monopolistic Competition
Oligopoly

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13
Q

Greek word which means one

A

Monos

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14
Q

Greek word which means sell

A

Polein

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15
Q

Under this situation, there is only one seller of goods or services

A

Monopoly

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16
Q

________ is a product market characterized by one seller, perfect barriers to entry, and has considerable control over the price.

A

Monopoly

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17
Q

Price Maker

A

Monopolist

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18
Q

Price Taker

A

Firm

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19
Q

The _______ can influence and has considerable control over the price

A

Monopolist

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20
Q

Refers to a market situation in which firms agree to cooperate with one another to behave as if they were a single firm.

A

Cartel

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21
Q

The most common example of a cartel is the _______ of ______ _____ _______

A

OPEC

Organization of Petroleum Exporting Countries

22
Q

Monopolies are classified according to…

A

Cost Structure of the Industry
Possibly the result of law
or by other means

23
Q

It is a market situation where a single firm can supply the entire market due to the fundamental cost structure of the industry.

A

Natural Monopoly

24
Q

Sometimes called as “de jure monopoly”

A

Legal Monopoly

25
Q

A form of monopoly which the government grants to a private individual

A

Legal Monopoly

26
Q

A form of monopoly whose existence as the sole producer and distributor of goods and services is by means of coercion (legal or illegal), so that most of the time it violates the principle of free market just to avoid competition.

A

Coercive Monopoly

27
Q

It is a market situation in which there are many sellers producing moderate differentiated products.

A

Monopolistic Competition

28
Q

Greek word which means few

A

Oligo

29
Q

Greek word which means sell

A

Polein

30
Q

Is a market structure with few large and relatively high barriers to entry.

A

Oligopoly

31
Q

Is a formal agreement among oligopolists to set-up a monopoly price, allocate output, and share profit among members.

A

Cartel

32
Q

Is a formal and informal agreement among oligopolists to adopt policies that will restrict or reduce the level of competition in the market.

A

Collusion

33
Q

Defined as the demand curve of the individual firm in oligopolistic market

A

Kinked demand curve

34
Q

(Pg 206) Which type of market?

Number of sellers: LARGE NUMBER OF SELLERS

A

Perfect Competition

35
Q

(Pg 206) Which type of market?

Number of sellers: MANY

A

Monopolistic Competition

36
Q

(Pg 206) Which type of market?

Number of sellers: FEW, SMALL NUMBER OF FIRMS

A

Oligopoly

37
Q

(Pg 206) Which type of market?

Number of sellers: ONLY ONE SELLER

A

Monopoly

38
Q

(Pg 206) Which type of market?

Degree of control over price: PRICE TAKER

A

Perfect Competition

39
Q

(Pg 206) Which type of market?

Degree of control over price: LIMITED CONTROL

A

Monopolistic Competition

40
Q

(Pg 206) Which type of market?

Degree of control over price: SUBSTANTIAL CONTROL OVER PRICE

A

Oligopoly

41
Q

(Pg 206) Which type of market?

Degree of control over price: PRICE DICTATOR/PRICE MAKER

A

Monopoly

42
Q

(Pg 206) Which type of market?

Type of Product : HOMOGENOUS PRODUCT

A

Prefect Competition

43
Q

(Pg 206) Which type of market?

Type of Product : DIFFERENTIATED PRODUCT

A

Monopolistic Competition

44
Q

(Pg 206) Which type of market?

Type of Product : HOMOGENOUS OR DIFFERNTIATED

A

Oligopoly

45
Q

(Pg 206) Which type of market?

Type of Product : HIGHLY STANDARDIZED

A

Monopoly

46
Q

(Pg 206) Which type of market?

Barriers to Entry : NONE

A

Perfect and Monopolistic Competition

47
Q

(Pg 206) Which type of market?

Barriers to Entry : SUBSTANTIAL

A

Oligopoly

48
Q

(Pg 206) Which type of market?

Barriers to Entry : COMPLETE

A

Monopoly

49
Q

(Pg 206) Which type of market?

Degree of consumer Information : PERFECT

A

Pefect Competition

50
Q

(Pg 206) Which type of market?

Degree of consumer Information : SLIGHTLY IMPERFECT

A

Monopolistic Competition

51
Q

(Pg 206) Which type of market?

Degree of consumer Information : PERFECT OR IMPERFECT

A

Oligopoly and Monopoly

Health Economics (12 decks)

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