United 5; Market Structures Flashcards
Perfect Competition
The most efficient market structure because there are many firms competing.
Monopolistic Competition
A competitive market structure where the product is differentiated but there are many sellers
Oligopoly
A less competitive market where a few companies dominate the market
Momopoly
No competition because one company controls the market
Differentiation
the process of differentiating
Collusion
illegal cooperation
Public Goods
a commodity that is provided without profit to all members of a society
Negative Externality
When a third party is negatively impacted by the actions of another party
Positive Externality
A benefit that a third party receives as an indirect result of another party’s economic transaction
Which type of market structure is considered the best by economists? Why?
Perfect competition because then there are more buyers and sellers in the market.
Which type of market structure is likely responsible for completely original products?
Monopolistic competition
The “Free-Rider” problem is most associated with witch type of market failure?
Public goods
