Oligopoly

Question 1

Differentiated products

Answer 1

Products that are similar but not perfect substitutes

Question 2

Homogenous products

Answer 2

Goods are identical, are perfect substitutes

Question 3

Oligopoly

Answer 3

The market structure that applies when there are few firms competing

Question 4

Monopolistic competition

Answer 4

The market structure that applies when there are many competing firms and products are differentiated

Question 5

Monopolistic? Competition?

Answer 5

Monopolistic-have market power, choose their own price Competition- no restrictions on entry

Question 6

Monopolistic competition vs. oligopoly with heterogeneous goods

Answer 6

In an oligopoly with heterogenous goods, there is barrier to entry, where there is not in monopolistic competition

Question 7

Ways governments control monopolistic behavior

Answer 7

Collisions are illegal, limiting mergers

Question 8

HHI

Answer 8

(%controlled by A)²+(%controlled by B)²…

The higher the HHI, the more concentrated the industry