Market structures

Question 1

perfect competition

Answer 1

lots of smaller firms in a market all with little/no power

Question 2

sources of monopoly power

Answer 2

• legal (copyrights etc.)
• strategic (advertising etc.)
• brand loyalty

Question 3

perfect competition conditions

Answer 3

• large number of buyers & sellers
• perfect info
• price takers
• homogenous products
• no barriers to entry