utility correct answers level of satisfaction
marginal utility correct answers utility you get from the next increment
perfect competition correct answers each firms sells the exact same product/ no market power/ base for comparison model
monopoly correct answers one firm, no competition
...
marginal utility correct answers utility you get from the next increment
perfect competition correct answers each firms sells the exact same product/ no market power/ base for
comparison model
monopoly correct answers one firm, no competition
barrier to entry correct answers anything that keeps out competition (patents, copyrights, pharmesudical
industry)
oligopoly correct answers 2-6 firms that sell the most of the product in the industry.
More market power because limited competition.
(verizon, sprint, att&t) (coke, pepsi, dr. pepper) (beer)
monopolistic competition correct answers less market power than oligopoly
more than 5 firms but less than 100s
products are similar but different
some market power
(pizza) (colleges)
many firms competing to sell similar but differentiated products
close substitutes correct answers don't have extreme power
key to the continuum of market structure correct answers left to right: low to high market power
market power correct answers idea that firms can raise or lower prices to maximize profit and won't lose
competitors bc they have limited competition
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