Self-interest and Competition Flashcards
What is perfect competition?
A market with perfect knowledge and mobility, with many buyers and sellers. The products are homogeneous product.
What is monopolistic competition?
A market with similar products, a large amount of buyers and sellers, easy entry and exit and good knowledge of the market.
What is an oligopoly?
A market with different products, a few sellers with a large amount of buyers, substantial knowledge but many barriers to entry and exit
What is a duopoly?
A market with 2 companies that produce similar products and control that specific market. Prevents people from joining the market. Share the profit. Example: Visa and Mastercard
What is a monopoly?
A market where this is only one seller or producer for a product. There is no close substitute to the product. Limited knowledge, large profits, significant barrier to entry.
