The author states that "perfect mobility of resources" is necessary for pure competition to occur. What do you think that means?

The highest form of competition is called

a. monopoly.

b. perfect competition.

c. market competition.

d. demand.

Describe characteristics and give examples of perfect competition (pure competition).

How is imperfect competition different from perfect competition?

In which two market models would advertising be used most often?

A) perfect competition and monopoly

B) perfect competition and monopolistic competition

C) monopolistic competition and oligopoly

D) monopoly and oligopoly

Compare and contrast perfect competition and pure monopoly. Why is it rare to find perfect competition?

When the author states that the Sherman Act "laid down broad foundations for maintaining competition," what does this mean and imply?

What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of a price ceiling on the quantity supplied? Why exactly does a price ceiling cause a shortage?

An effective price ceiling will most likely result in?

What example in the text supports the claim that the production of too few public goods may result in a market failure?

Look at the list you made. Which causes are necessary? Are they all necessary? Which ones might be sufficient but not needed to explain the event? Which causes only contributed to shaping the event?

Why might it be a good idea to support a natural monopoly?

Why do markets fail?

What are costs and benefits of government involvement in spillovers ?