Econ. Ch. 7

Question 1

Product markets

Answer 1

is the marketplace in which final goods or services are offered for purchase by consumers, firms, and the public.

Question 2

Pure competition

Answer 2

A market structure in which a large number of firms all produce the same product.

Question 3

Monopolistic competition

Answer 3

is a type of imperfect competition such that many producers sell products that are differentiated from one another.

Question 4

Oligololy

Answer 4

A market structure in which a few large firms dominate a market

Question 5

Monopoly

Answer 5

A market dominated by a single seller

Question 6

Monopoly regulation

Answer 6

Is used to protect the interests of consumers. (i.e. When a firm controls all of a good or service, they can raise the price to what ever they want.)

Question 7

Barriers to entry

Answer 7

Are used so that there are not too many companies creating the same material.

Question 8

Natural monopolies

Answer 8

A market that runs most efficiently when one large firm supplies all of the outputs.

Question 9

Economies of scale

Answer 9

a proportionate saving in costs gained by an increased level of production.