SAS13: Market Structure of Health Care Sector

Question 1

It is any place at which the individual needing medical and non-medical goods and services can communicate with the one producing medical and non-medical goods and services.

Answer 1

Market

Question 2

It is any effective arrangement for bringing buyers and sellers together, not necessarily face to face.

Answer 2

Market

Question 2

What are the 3 things to consider with Market?

Answer 2

Types of goods and services being traded, The number and size of buyers and sellers in the market, & The degree to which information can flow freely

Question 3

What are the 4 types of market?

Answer 3

Perfect Competition, Monopolistic Competition, Oligopoly, & Monopoly

Question 4

It is the degree of competition in the market and the way in which the market is organised.

Answer 4

Market Structure

Question 5

This type of market has many competitors, who produce the same product and the market sets the price.

Answer 5

Perfect/Pure Competition

Question 6

It is the principal aim of a firm.

Answer 6

Maximize profits

Question 6

It is the demand curve faced by firms.

Answer 6

Horizontal

Question 6

What are the 2 critical Assumptions that build Perfect Competition?

Answer 6

The behavior of an individual firm & the nature of an industry in which it operates

Question 7

A market situation where in the conditions necessary for perfect competitions are not satisfied.

Answer 7

Imperfect Market

Question 7

When the price of the product is constant, the change in total revenue is equal to price.

Answer 7

P = MR

Question 8

The firm will maximize profits by producing at the level of output where Marginal Revenue is equal to Marginal Cost.

Answer 8

MR = MC

Question 9

An example of Imperfect Market.

Answer 9

Monopolistic competition, oligopoly, or monopoly

Question 10

This is a product market characterized by one seller, perfect barriers to entry, and has considerable control
over the price.

Answer 10

Monopoly

Question 11

In Monopoly, Price Maker is called what?

Answer 11

The Monopolist

Question 12

In Monopoly, Price Taker is considered what?

Answer 12

Firm

Question 13

It is a greek word which means one.

Answer 13

Monos

Question 14

It is greek word which means sell.

Answer 14

Polein

Question 14

What are the 2 most common barriers to entry in Monopoly?

Answer 14

economies of scale and legal restrictions

Question 14

What are the 2 extremes of the market structure continuum?

Answer 14

Perfect Competition & Pure Monopoly

Question 14

This type of market is a cross between perfect competition and monopoly, having characteristics of
both.

Answer 14

Monopolistic Competition

Question 14

This is how sellers differentiate their products.

Answer 14

Advertising

Question 15

It creates imaginary or artificial wants, persuasive, not informative, business stealing with no benefits
to consumer and habit buying.

Answer 15

Advertising

Question 16

This type of market has just a few, dominant sellers, homogeneous or differentiated product and
substantial barriers to entry.

Answer 16

Oligopoly

Question 17

This market relies a lot on non-price competition.

Answer 17

Oligopoly

Question 18

This refers to a market situation in which firms agree to cooperate with one another to behave as if they
were a single firm.

Answer 18

Cartel