Econ Chapter 8 Competition and Markets

Firms in monopolistic competitive markets are price takers.

Most monopolistic competitors prefer not to become monopolists.

Barriers to entry limit potential competition.

The term colluding refers to making secret agreements that reduce competition.

Antitrust laws are meant to control monopoly power and to promote competition.

Monopolists face a limit as to how high a price they can charge.

A successful, profitable oligopolistic firm will attract other sellers into the market.

Sellers choose to charge different prices to different buyers to increase total revenue.

Firms in a monopolistic competitive market are price searchers.

A wheat farmer is an example of a monopolistic competitive business.

When there are few firms in a market structure, the firms are considered price searchers.

Cartel agreements are illegal in the U. S. but are permitted in other parts of the world.

The cereal market is a monopolistic competitive market.

Profit in a market acts as a signal to new firms to enter that market.

In a perfectly competitive market, products must be

Antitrust laws are designed to

Airlines and cars are examples of industries in the monopolistic competitive market.

In what market structure are sellers “price takers”?

There are often unintended effects of government regulation of natural monopolists.

It is the competition between buyers and sellers that keeps downward pressure on prices.

When a single producer has complete control over one kind of good or service, this is called

Maximizing profit is the goal of

In the soft drink industry, if two companies account for about 80 percent of sales, this is an

Once a cartel is formed, it is unlikely to dissolve.

Extremely low average total cost is an example of a legal barrier.

Movie theaters practice price discrimination.

There is no difference between a government monopoly and a market monopoly.

A monopolistic market consists of one seller that sells a product that has no close substitutes

The stock market is an example of a perfectly competitive market.

Easy entry into the market is a characteristic that all the market structures share.

It is important to a monopolist to search out the best price through trial and error.

There is ease of entry into a monopolistic market.

The Sherman Act and the Clayton Act are both examples of antitrust laws.

A patent is granted for a new product or process for five years.

A characteristic of a monopolistic competitive market is that it has few sellers.

There are large barriers to entry in the monopolistic competitive market.

Firms protected from competition by public franchises, patents, or copyrights are called

In some towns, cable television providers and trash collectors are monopolists.

When only a few producers and their products dominate an industry, this is called

Profit attracts new firms into the perfectly competitive market.

Which of the following industries practice price discrimination?

Individuals who own stock may sell it below or above the equilibrium price of the stock.

Monopolistic competitors frequently use advertising to stand out among the competition.

The U.S. Supreme Court decides some antitrust cases.

Steel is an example of an identical good.

In monopolistic competitive markets, firms spend considerable amounts of money on

Sellers in all markets can price discriminate.

The phrase tying contracts describes the merger of two firms into one.

Government regulation serves as an incentive to the natural monopolist to hold down its costs.

When it comes to determining price, sellers in a perfectly competitive market have