Midterm, Introduction

Question 1

government-imposed price control (prices cannot go higher than the mandated price control)

Answer 1

Price Ceiling

Question 2

price cannot go lower than the mandated price

Answer 2

Price Floor

Question 3

refers to the price using land in the process of production

Answer 3

Rent

Question 4

the ability of any actor or group of actors in the market and the quantity to be produced

Answer 4

Market Power

Question 5

low demand of land D0

Answer 5

idle

Question 6

high demand of land D1

Answer 6

agriculture

Question 7

very high demand of land D2

Answer 7

Business and condominiums

Question 8

no single seller or buyer has the power to determine the price and the level of output (homogenous product)

Answer 8

Perfect Competition

Question 9

characterized by a single seller

Answer 9

Monopoly

Question 10

the market structure has one buyer

Answer 10

Monopsony

Question 11

characterized by few sellers producing a similar differentiated products (realistic market structure)

Answer 11

Oligopoly

Question 12

there is a competition among few sellers, but it is imperfect since the excess profit is only reduced but not eliminated

Answer 12

Imperfect Competition

Question 13

mimics a competitive market (neglect each other)

Answer 13

Independent actions

Question 14

forming a cartel and monopolizing the market (either to compete or cooperate)

Answer 14

Collusion

Question 15

has the element between competitive and monopolistic market

Answer 15

Monopolistic Competition