Market Structures Flashcards
What is a monopoly?
One Firm dominating the market
What is Duopoly?
2 Firms producing and selling in the market
What is Oligopoly?
Few Firms producing and selling in the market
What is Monopolistic Competition
Lots of Firms producing and selling in the market
What is Perfect Competition?
Many Firms producing and selling in the market
What is Homogenous Products?
Identical Product
Which market structures have Homogenous Products?
Perfect Competition and Monopolistic Competition
What is Product Differentiation?
when one product is different to the other
Which market structures have homogenous products?
Monopolistic Competition and Perfect Competition
Which market structure has monopolistic powers if a firm has over 25% market share?
Monopoly
why do Monopolies charge high price for their product?
because the product is a necessity and consumers have to get it no matter the price
Why does Perfect Competition not exist?
because markets still barriers to entry and exit
why does the consumer have more power when there is more than one firm producing and selling in the market?
Because they have the choice to choose whichever market they can go to
