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Define each of the following as either:
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Monopoly
Oligopoly
Monopolistic Competition
Perfect Competition
◦ Cartel
◦ Monopsony
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2-5 companies
A Price Taker
American car companies
Perfectly elastic demand
schedule
Best market type for
consumers
Com Ed
Sprint & Verizon
Most difficult barriers to entry
Single buyer, many producers
Microsoft in the 1990s
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Oli
Perfect
Oli
Perfect
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Perfect
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Monopoly
Oli
Monopoly
Monopsony
Monopoly
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The Federal Reserve
Product is the only one
available
Many substitutes but with
differences.
Small, privately owned
restaurants.
Soft Drink industry
Ten or more companies.
The Market in Wheat Game
could be an example.
Businesses or countries that
act together as a single
producer
U.S. Military industry
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Cartel
Monopoly
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Monopolistic
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Monopolistic
Oli
Monopolistic
Perfect
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Cartel
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Monopsony
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Burger King
Few barriers to entry
Infinite sellers & no barriers
to entry
When legal, are government
controlled
Very similar products
All goods supplied are
identical
O.P.E.C.
United States Postal Service.
Medicare
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Oligopoly
Monopolistic
Perfect
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Monopoly
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Monopolistic
Perfect
Cartel
Monopoly
Monopsony
A. A key resource is owned by a single firm.
B. The costs of production make a single
producer more efficient than a large number of
producers.
C. The government has given the existing
monopoly the exclusive right to produce the
good.
A. Produce as much as possible each round.
B. Produce a safe amount each round.
C. Produce a small number, unless you had a low
cost card.
D. Produce a small number when you had a low
cost card, produce high if you didn’t.
A.
B.
C.
D.
High prices
Control of pricing
Control of supply
Control of demand
A. Government blocking of AT&T – T-Mobile merger
B. Lending of sub-prime loans in the 2000s
C. The existence of government controlled
monopolies
D. DeBeers paying a $10 million fine for price fixing
A.
B.
C.
D.
Mergers
Expansion
Franchising
Acquisition
A.
B.
C.
D.
Production costs make a single producer more
efficient than a large number of producers.
Occurs when more units of a good or a service
can be produced on a larger scale
Larger economic costs exist in larger
industries
Explains the costs advantages enterprises
obtain due to size
A.
B.
C.
D.
Land, Labor & Capital
Land, Labor & Costs
Land, Market & Capital
Labor, Market & Costs
A.
B.
C.
D.
Sole proprietorship: division of profits
Corporation: taxation
Partnership: availability of resources
Sole Proprietorship: liability