Ch. 7.1 #1-4
1. Perfect competition is a market structure in which a large number of firms all produce the same product.
-gatorade and poweraid
2. Start up costs discourage entrepreneurs from entering a market because the entrepreneurs may not have the money necessary to enter the specific market that they are looking at.
3. Barriers to entry include start-up costs like printing fees and technology like the programs for setting up the outline of a magazine.
4. Perfect competitive markets only deal in commodities because all the companies in the market are producing the same product. A commodity is defined as a product that is the same, now matter who produces it....there ya go.
Vocabulary Ch. 7.1
perfect competition-a market structure in which a large number of firms all produce the same product
commodity-a product that is the same no matter who produces it
barrier to entry-any factor that makes it difficult for a new firm to enter a market
imperfect competition-a market structure that doesn't meet the conditions of perfect competition
start-up costs-the expenses a firm must pay before it can begin to produce and sell goods
Ch 7.2 1-4
1. Market power - a company with market power can change prices and output like a monopolist
2. Govt. approves of natural monopolies because they are the regular growth of businesses that they don't want to interfere with.
3. three types of price discrimination are discounts, rebate, and promotions.
4. economics of a scale - factors that cause a producer's average cost to produce a singe thing to fall as their overall production rises.
Ch. 7.2
1. the four conditions for a monopolistic competition to work are many firms, few barriers, slight control over price, and differentiated products.
2. if more than one products trump an industry
3. quality competition, image competition, and physical characteristics.
4. the firms agree on things that the consumers can buy in the most bulk.
Ch. 7.4
1. The purpose of antitrust laws is to encourage good competition in the marketplace, ultimately providing consumers with the best, most affordable goods/services.
2. The govt. allows mergers when it doesn't lead to unfair market control.
3. Predatory pricing makes your goods/services set very low and can run competitors out of business.
4. Deregulation of the banking and air travel industries allowed or forced firms to compete more in markets by eliminating any entry barriers and price controls.
Ch. 7 Review 1-7, 9-14
1. price discrimination
2. perfect competition
3. oligopoly
4. commodity
5. patent
6. natural monopoly
7. price fixing
9. buying and selling stocks is a good model of perfect competition because everyone has the same opportunity to buy the stocks and the price is the same for everyone. There is no restriction other than price that limits everyone from having a fair chance starting up.
10. Natural monopolies are formed when one company overpowers the competition by so much that no other competition really has the opportunity to build up its cliental and falls through. Govt. monopolies are set up by the govt. giving one company most power in order to simplify random needs.
11. The four conditions of monopolistic competition are few artificial barriers to entry, slight control over price, differentiated products, and many firms.
12. The US govt. helps promote some monopolies because the production price to start the companies is too much and may make things harder on people in the areas being developed.
13. when monopolies are in power, the price can be whatever the monopolies choose to make it. When it is perfect competition, usually the lowest price for the best product is the price that everyone will set theirs at.
14.
1. Perfect competition is a market structure in which a large number of firms all produce the same product.
-gatorade and poweraid
2. Start up costs discourage entrepreneurs from entering a market because the entrepreneurs may not have the money necessary to enter the specific market that they are looking at.
3. Barriers to entry include start-up costs like printing fees and technology like the programs for setting up the outline of a magazine.
4. Perfect competitive markets only deal in commodities because all the companies in the market are producing the same product. A commodity is defined as a product that is the same, now matter who produces it....there ya go.
Vocabulary Ch. 7.1
Ch 7.2 1-4
1. Market power - a company with market power can change prices and output like a monopolist
2. Govt. approves of natural monopolies because they are the regular growth of businesses that they don't want to interfere with.
3. three types of price discrimination are discounts, rebate, and promotions.
4. economics of a scale - factors that cause a producer's average cost to produce a singe thing to fall as their overall production rises.
Ch. 7.2
1. the four conditions for a monopolistic competition to work are many firms, few barriers, slight control over price, and differentiated products.
2. if more than one products trump an industry
3. quality competition, image competition, and physical characteristics.
4. the firms agree on things that the consumers can buy in the most bulk.
Ch. 7.4
1. The purpose of antitrust laws is to encourage good competition in the marketplace, ultimately providing consumers with the best, most affordable goods/services.
2. The govt. allows mergers when it doesn't lead to unfair market control.
3. Predatory pricing makes your goods/services set very low and can run competitors out of business.
4. Deregulation of the banking and air travel industries allowed or forced firms to compete more in markets by eliminating any entry barriers and price controls.
Ch. 7 Review 1-7, 9-14
1. price discrimination
2. perfect competition
3. oligopoly
4. commodity
5. patent
6. natural monopoly
7. price fixing
9. buying and selling stocks is a good model of perfect competition because everyone has the same opportunity to buy the stocks and the price is the same for everyone. There is no restriction other than price that limits everyone from having a fair chance starting up.
10. Natural monopolies are formed when one company overpowers the competition by so much that no other competition really has the opportunity to build up its cliental and falls through. Govt. monopolies are set up by the govt. giving one company most power in order to simplify random needs.
11. The four conditions of monopolistic competition are few artificial barriers to entry, slight control over price, differentiated products, and many firms.
12. The US govt. helps promote some monopolies because the production price to start the companies is too much and may make things harder on people in the areas being developed.
13. when monopolies are in power, the price can be whatever the monopolies choose to make it. When it is perfect competition, usually the lowest price for the best product is the price that everyone will set theirs at.
14.