Marktet and its strucutre

Question 1

The 3 meaning of market

Answer 1

1. the place where the transaction takes place
2. the transaction itself
3. group of people for whom the products are intended to be sold.

Question 2

4 types of market structure

Answer 2

1. pure or perfect competition
2. differentiated or monopolistic competition
3. monopoly
   4 oligopoly

Question 3

5 Characteristics of perfect competition

Answer 3

1. many sellers
2. identical products
3. price takers
4. no promotion
5. basic needs

Question 4

example of pure competition

Answer 4

1. eggs
2. rice
3. vegetables
4. fruits

Question 5

4 Characteristics of differentiated competition

Answer 5

1. differentiated
2. many sellers
3. limited pricing control
4. heavy promotions

Question 6

example of differentiated competition

Answer 6

1. bath soaps
2. sardines
3. cup noodles
4. fast food chains

Question 7

5 Characteristics of Monopoly

Answer 7

1. one producer
2. uncommon product
3. no close substitute
4. too much pricing control
5. promotion is not needed

Question 8

example of monopoly

Answer 8

utilities

Question 9

4 Characteristics of Oligopoly

Answer 9

1. Few sellers
2. almost identical products
3. sellers have pricing power
4. promotion are needed

Question 10

examplees of oligopoly

Answer 10

oil
cars
tv
refrigerator
computers
cellphones
soft drinks