MARKET STRUCTURES

Question 1

one of the numerous infrastructures, systems, institutions, social relations, and procedures, wherein buyers and sellers usually interact with each other to exchange goods and services.

Answer 1

MARKET

Question 2

the key points in evaluating business’ economic environments.

Answer 2

MARKET STRUCTURES

Question 3

It deals with strategic decision making and focuses on both economics
and marketing, making professional entrepreneurs precisely judge industry, policy changes, and market news.

Answer 3

MARKET STRUCTURES

Question 4

concern to both economists and marketers since they have different
methodological approaches in this, and each of them has their strengths and weaknesses.

Answer 4

MARKET STRUCTURES

Question 5

CHARACTERISTICS OF MARKET STRUCTURES

Answer 5

= The relationship between a seller to another seller, a seller to his/her buyer, and many more.
= The concerns in entering and exiting the market.
= The dissemination of market shares for the largest firms.

Question 6

Herein, there is a single merchant of a product for which there is no close alternative.

Answer 6

MONOPOLY

Question 7

in which differentiated product has many vendors.

Answer 7

MONOPOLISTIC COMPETITION

Question 8

wherein, a similar product has many sellers.

Answer 8

PERFECT COMPETITION

Question 9

whereupon, there are few sellers of a standardized or a differentiated product.

Answer 9

OLIGOPOLY

Question 10

pertains to a situation wherein there is only a single company that produces a certain product in the entire market.

Answer 10

MONOPOLY

Question 11

commonly emerge because there is a high barrier to entry and exit in a particular market.

Answer 11

MONOPOLIES

Question 12

If the key resource is solely owned by
a firm, the firm can limit the access to this source, therefore creating a monopoly.

Answer 12

OWNERSHIP OF A FUNDAMENTAL RESOURCE

Question 13

In some sectors, a single firm can sustain products or goods at a lower price than two or more firms could, resulting in a natural monopoly, which arises even without the intervention of the government.

Answer 13

ECONOMIES OF SCALE

Question 14

To suffice the interest of the public, the government usually restricts market entries in a legal way, which is through copyright laws and patents.

Answer 14

GOVERNMENT REGULATIONS

Question 15

usually unwelcomed to society because it can cause deadweight loss by producing lesser outputs than the competitive ones, yet still, have higher prices. However, the government can react to these by demanding price regulations, establishing competition laws, nationalizing the monopolies, or by not doing anything at all.

Answer 15

MONOPOLIES

Question 16

When there is a numerous quantity of small firms competing against each
other.

Answer 16

MONOPOLISTIC COMPETITION

Question 17

several companies sell the same product but they have their differences.

Answer 17

MONOPOLISTIC COMPETITION

Question 18

CHARACTERISTICS OF MONOPOLISTIC COMPETITION

Answer 18

= Every firm is a price setter and can maximize their profit.
= They sell similar yet slightly different products.
= The consumers can favor a product more than the other one.
= There are easy entrances and exit in this market.

Question 19

type of market structure where many products are similar and may substitute each other since they have the same features, price and, quality.

Answer 19

PERFECT COMPETITION

Question 20

They also have uniform prices that depend on the demand and supply which means that the market has full control over implying prices.

Answer 20

PERFECT COMPETITION

Question 21

CHARACTERISTICS OF PERFECT COMPETITION

Answer 21

= Both the producers and consumers have perfect knowledge without information failures.
= Producers and consumers are making coherent decisions for their benefit.
= There are no hindrances to enter nor exit from this type of market.
= ompanies manufacture identical products that are not branded.
= Producers don’t have the power to influence the market price nor the condition.

Question 22

a type of market structure where firms dominate the market by supplying either similar or differentiated products.

Answer 22

OLIGOPOLY

Question 23

It is also difficult to enter this market since there are a lot of barriers. Moreover, participants in oligopolies are price setters rather than takers.

Answer 23

OLIGOPOLY

Question 24

CHARACTERISTICS OF OLIGOPOLY

Answer 24

> Entrepreneurs maximize profits.
Oligopolies set prices rather than take prices.
There are a lot of barriers.
Interdependent
Rampant advertising since most companies use national media to promote their products.