Ch 23 The Four Market Structures and Competition

  1. What comptetiton has a large numbers of buyers and sellers?
    Pure Competition and Monopolistic Competition
  2. What comptetiton has no product differentiations? meaning products are idential
    Pure Comptition
  3. What comptetiton has lots of competition?
    Pure Competition
  4. What comptetiton must keep prices low to attract customers?
    Pure Comptiton
  5. What comptetiton is very easy to enter and exit this market sturcture?
    Pure Competion
  6. What is the closest example to a pure competition?
    farmer market
  7. What comptetiton has product differentiation? meaning that manufactures try to make design changes to basically identiacal products.
    Monopolistic Competition
  8. Which competiton is a nonprice competition?
    Monopolistic Competition
  9. How does a monopolistic comptition compete by?
    • advertising
    • they try to make their product seem better, different, and special than other products
  10. Give examples of an monopolistic competition.
    dry cleaners, market, jeans
  11. What competion has a few large sellers of a product dominate?
  12. What competion tends to copy each other?
  13. What competion has collusion (price fixing)?
  14. What competion is not very easy to enter this market structure?
  15. What competion is when one seller dominates the market?
  16. What is the four types of molopoly?
    • natural monopoly
    • geographic monopoly
    • technological monopoly
    • government monopoly
  17. What is a natural monopoly? Give examples
    • only sense to have one set of business around
    • ex. entergy, waterworks
  18. What is a geographic monopoly? Give examples.
    • only one around the area, force to go there
    • ex. Superdome, gas station in the middle of nowhere
  19. What is a government monolopy? Give an example.
    • own and opperated by the government
    • ex. U.S. post office
  20. Name four reasons why monopolies are harmful.
    • creates higher prices
    • low supply of business fails
    • quality goes doen b/c they don't care only provider
    • waste resources
  21. What are the 3 anit-trust laws against monopolies?
    • Sherman Anti-Trust Act
    • Clayton Anti-Trust Act
    • Federal Trade Comission Act
  22. What is the Sherman Anti-Trust Act?
    this is the FIRST law AGAINST monolpolies. It help to maintain competition.
  23. What is the Clayton Anti-Trust Act?
    the 2nd law AGAINST monolpolies. It was more specific than the Sherman Anti-trust Act. It specifically outlawed PRICE DISCRIMINATION.
  24. What is the Federal Trade Commision Act?
    • 3rd law against monopolies . It enforce the first 2 laws and specifiaclly stopped unfair business practices like PRICE FIXING.
    • PRICE FIXING- setting prices b/w 2 competitors high.
  25. What is federal regulatory agencies helps fight air and water pollution?
    Enviromental Protection Agency (EPA)
  26. What is federal regulatory agencies licenses and regulates radio and television stations?
    Federal Communications Commission (FCC)
  27. What is federal regulatory agencies regulates air commerce; sets standards for pilot training, aircraft maintance, and air traffic control; also controls the U.S. airspace?
    Federal Aviation Admission (FAA)
  28. What is federal regulatory agencies enforces laws to ensure purity, effectiveness, and truthful labeling food, drugs, and cosmetics, it inspects the production and the shipment of these products?
    Food and Drug Adminstration (FDA)
Card Set
Ch 23 The Four Market Structures and Competition
Free Enterprise 10 Grade