The 4 market structures

Question 1

Perfect competition

Answer 1

A market structure in which a large number of firms all produce the same product it must accept the quilibrium price at which it sells the good.

Question 1

Monopolistic competition

Answer 1

Many companies selling similar but not identical products firms determine the pricing, supply and demand forces do not dictate pricing

Question 2

Oligopoly

Answer 2

Limited competition; market share by a small amount of producers and sellers. Under the leadership of one firm.

Question 3

Monopoly

Answer 3

COMPLETE control of a product or service

Question 4

Market curves vs individual firm curves

Answer 4

Market curves: the sum of the individual demand curve in a given market

Individual firm: Shows how much output a firm in a perfectly competitive market will supply at any given price

Question 5

Antitrust regulation

Answer 5

Laws that define monopolies and give government the power to control them and break them up
Ex: Amazon, google, Facebook
All facing antitrust charges because the government says that they have monopoly,
Market structure is competitive, those companies do not have competition.