For a perfectly competitive market to function properly, buyers and sellers must have access to what?
adequate information
One of the primary characteristics of perfectly competitive markets is that they what?
are relatively efficient
a market structure in which a large number of firms all produce the same product is what?
Perfect competition is what?
Any factor that makes it difficult for a new firm to enter a market is referred to as what?
a barrier to entry
A market structure that does nor meet the conditions of perfect competition is what?
Imperfect competition
A product that is the same no matter who produces it, such as beef, gasoline, or corn is what?
A commodity
The expenses a firm must pay before it can begin to produce and sell goods is what?
Start- up costs
Free entry and exit refers to the what?
ability of businesses to begin or end production and sales according to profitability
A landscaper purchases a lawnmower, a rake, a truckload of gravel, and a chainsaw. Which of these 4 goods would most likely be considered a commodity
a truckload of gravel
What is one reason that individual producers in a perfectly competitive market have no influence over prices?
Perfectly competitive firms produce a small amount of product compared to the total supply
For the average total cost curve if a firm with economies of scale, as output increases what happen?
Cost go down
Factors that cause a producer's average cost per unit to fall as output rises are what?
economies of scale
The right to sell a good or service within an exclusive market is a what?
franchise
A government-issued right to operate a business is a what?
license
In the 1990's, what reduced the barriers to entry in the local telephone market?
the rising popularity of cell phones
What are the principal conditions that allow monopolies to exist?
barriers to entry
If a monopolist increases the selling price of a good from $20 to $30, then the marginal revenue is what?
Cannot be determined from the information given
A market that runs most efficiently when one large firm supplies all of the output is referred to as what?
A natural monopoly
Firms in which market structure hold the most market power?
Monopoly
The ability of a company to change prices and output like a monopolist is what?
Market power
In general, monopolistically competitive firms earn profits how?
Slightly above their costs in the long run
A series of competitive price cuts that lowers the market price below the cost of production is what?
price war
What are the three practices of oligopolies that concern the government the most?
Price fixing, collusion, and cartels
The name for a formal organization of producers that agree to coordinate prices and production is what?
A cartel
When a real estate agent says the three most important factors when buying a property are "location, location, location" the agent is referring to one of the forms of what?
non-price competition
An agreement among firms to divide the market, set prices, or limit production is what?
collusion
A market structure in which many companies sell products that are similar but not identical is what
monopolistic competition
An agreement among firms to charge one price for the same good is what?
Price fixing
Which market structure would a company with high start-up costs and an ongoing expensive advertising and promotional campaigns most likely belong to?
oligopoly
All of the following are conditions of monopolistic competition EXCEPT what?
high artificial barriers to entry
The removal of some government controls over a market is called what?
deregulation
The combination of two or more companies into a single firm is what?
A merger
There are two shoe stores in a small town. Store A is selling a pair of running shoes for $39.95. If it costs Store A $40 to order this pair of shoes from the factory, then?
This store is practicing predatory pricing.
In 1997, Microsoft was accused of using a monopoly in operation systems to control the market for what?
browsers
Like a cartel, an illegal grouping of companies that discourages competition is what?
A trust
All of the following are methods that the government uses to intervene and prevent firms from controlling the price and supply of important goods EXCEPT what?
Deregulating industries
Many critics argue that government efforts to regulate industries have caused what?
Inefficiencies
Selling a product below cost to drive competitors out of the market is what?
Predator pricing
A company that requires customers to buy multiple products from that company to obtain the one product that the customers truly wants is what?
Working around antitrust laws to gain control over the market
Laws that encourage competition in the marketplace are called what?
Antitrust laws