Competition Flashcards
What is competition in economics?
Competition in economics refers to the rivalry among businesses to attract customers and increase sales.
True or False: Perfect competition is characterized by a large number of firms selling identical products.
True
Fill in the blank: In a _____ market, there are few firms, and each firm has some control over the price.
oligopoly
What is the main feature of monopolistic competition?
The main feature of monopolistic competition is that many firms sell products that are similar but not identical.
Which type of market structure has a single seller?
Monopoly
Multiple Choice: Which of the following is NOT a characteristic of perfect competition? a) Many sellers b) Homogeneous products c) Price maker d) Free entry and exit
c) Price maker
What is a barrier to entry?
A barrier to entry is an obstacle that makes it difficult for new competitors to enter a market.
True or False: In an oligopoly, firms are interdependent and must consider the actions of other firms.
True
What is the primary goal of firms in a competitive market?
The primary goal of firms in a competitive market is to maximize profit.
Fill in the blank: A _____ is a market structure where a few firms dominate the market.
oligopoly
