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Perfect competition -Many well-informed buyers/sellers, is easy to enter/exit the market, and all selling identical products (ex: bus tickets, water, and agriculture)
expenses that a new business must pay before teh 1st product reaches a customer (internet makes this easier)
Characteristics that cause a producer's average cost to dropa s production rises are ________
economies of scale
A contract issued by a local authority that gives a single firm the right to sell its goods within an exclusive market is a _______
When you charge different groups of people different amounts for the same products =
4 Reasons for Monopolistic Competition Market Structures:
1) Many firms in the market 2) no real strong barriers to entry 3) slight control of price 4) differentiated/similar products
ESSAY QUESTION: Why businesses do "nonprice" and how? 4 reasons:
1) Different physical characteristics (size, color, shape of the product, etc) 2) location (gas, pharmacy, fast food, etc) 3) service (how you take care of the customer/product) 4) advertising image/status (nike, coke, designer purse, etc)
Conditions encouraging formation of oligopoly:
1) start-up costs 2) economies of scale 3) license/certain level of education
Practices that concern government:
1) price war (cut prices below cost of production) 2) trust (illegal group of companies that discourages companies) 3) cartel -group of businesses that form an oligopoly (drug, oil, etc)
What is deregulation? And name some industries.
Deregulation - removal of some government rules/regulations (airlines, trucking, and bank industry)
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