Market systems Flashcards
1
Q
What is a market?
A
transactions of goods and services between buys and sellers
2
Q
homogenous products
A
can’t distinguish the difference between competing products
3
Q
differentiated products
A
same products that are altered to make more appealing than others
4
Q
perfect competition
A
- large number of sellers competing
- both buys and sellers are price takers
- all firms maximize profit
- no barriers to entry
- homogeneous products
no consumer preference
= wet markets, same lemonade stands
5
Q
monopolistic competition
A
- imperfect market
- large number of firms competing
- limited to no barriers entry
- same but differentiated products
- they can influence the prices of the products
= hair salons, clothing, grocery stores, soda brands
6
Q
oligopsony
A
- few existing buyers
- can influence prices down
- barriers to entry
- buyers minimize cost
= fastfood chains
7
Q
monopsony
A
- one existing buyer
- can set the price
- high barriers to entry
- buyer minimizes costs
