Oligopoly and Monoply Flashcards
1
Q
Monopoly
A
One firm in the market
Very few to no substitutes exist
Price makers
Virtually impossible to very high to enter
1
Q
Oligopoly
A
Small, very large firms exist in the market
Differentiated products
Price makers
Extremely difficult to enter
2
Q
What is market failure
A
A situation that arises in the economy when the operation of markets leads to inefficient and less than optimal economic, environmental or social outcomes. Occurs when scarce resources are not allocated efficiently and total surplus is not maximised
