What are the differences between the four market structures in terms of the number of sellers in the market and the types of products produced?
What will be an ideal response?
1. Monopoly has one seller producing a unique product for which no close substitutes exist.
2. Oligopoly has a few large sellers which dominate the market, and can produce either differentiated or identical products.
3. Monopolistic competition has many sellers which produce differentiated products.
4. Perfect competition has very many sellers which produce identical products.
You might also like to view...
Discuss the differences between a tariff and a quota. Explain why quotas are considered to be a greater threat to competition than tariffs.
What will be an ideal response?
Monopolistic competition is inefficient because:
A. firms earn positive economic profits. B. the firms' marginal costs and marginal revenues are not equal. C. firms have excess capacity in the long run. D. entry is difficult.
Assume the exchange rate is allowed to fluctuate freely. Using the IS-LM-IP model, graphically illustrate and explain what effect monetary expansion will have on the domestic economy. In your graphs, clearly label all curves and equilibria
What will be an ideal response?
Trade results from
A) comparative advantage. B) diminishing returns. C) self-sufficiency. D) absolute advantage.