Markets Flashcards
1
Q
Competitive Market
A
Price takers so MR=D=AR=P is horizontal line
Can only control own production costs
2
Q
Perfectly Competitive Market
A
No long-run profit
Low barriers
Similar products
3
Q
Monopoly
A
High barriers Resource owned by 1 Exclusive rights Low cost production Single firm is more efficient than multiple
4
Q
Capitalistic Economy
A
Private ownership and prot cation is property rights
5
Q
Monopolistically Competitve in Long-Run Equilibrium
A
Has excess capacity
Output price exceeds marginal cost
No long-run profit
6
Q
Marginal Revenue of Perfectly Competitive
A
MR is constant
7
Q
Cartel model of Oligopoly
A
All firms in the industry act in unison to set a monopoly price
8
Q
Monopolistically Competitive and Perfectly Competitive firms in long-run equilibrium
A
P=ATC
9
Q
Source of Monopoly power
A
Barriers to entry
10
Q
True for Monopoly but not for a perfectly Competitive
A
Monopoly faces a downward-sloping demand curve
