What are the four types of markets? Give a brief description of each type
What will be an ideal response?
The four types of markets are perfect competition, monopoly, monopolistic competition, and oligopoly.
Perfect competition has many firms selling identical products to many buyers, with no barriers to entry or exit.
Monopoly has one firm selling a good with no close substitutes and a barrier that blocks the entry of new firms.
Monopolistic competition has many firms making similar but not identical products with no barriers to entry or exit.
Oligopoly has a small number of generally large firms producing either identical or differentiated products.
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Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market
A) the supply curve will shift to the left and the equilibrium price will increase. B) the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease. C) the demand curve will shift to the left and the equilibrium price will decrease. D) the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
In the case of a linear demand curve, demand becomes more price elastic as price increases
Indicate whether the statement is true or false
In the United States, a patent lasts
A) 7 years. B) 14 years. C) 20 years. D) forever.
For equilibrium in an open four sector economy:
a) Actual injections = actual withdrawals b) Planned injections = planned withdrawals c) Savings = investment d) Government spending = tax revenue