What market structure is the most difficult to enter?
Terms in this set (14)
- Monopoly (impossible entry)
- Oligopoly (difficult entry)
- Monopolistic competition (relatively easy entry)
- Perfect competition (very easy entry)
Which answer correctly lists the market structures from the most competition to the least?
The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly and pure monopoly.
Which of the following ranks the four market structures in order from least socially efficient to most socially efficient?
The answer is D. Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition.
How many phones will ProPhone need to sell to maximize profit?
six phones
Which investment provides a $40 daily profit for a game shop earning $2 profit from every game sold?
a vehicle
Is soap a perfect competition?
Let us take the case of market for soaps and detergents. This is the classical example of monopolistic competition. This makes this market different from perfect competition. In soap market, all are selling soaps under different names like Lux, Hamam, Santoor, Pears, Lifeboy, Dettol etc.
What are the assumptions of perfect competition quizlet?
Assumptions of perfect competition:
- A large number of buyers and sellers.
- Homogeneous products.
- No barriers to entry or exit.
- Perfect information.
- Perfect factor mobility.
What is the difference between perfect competition and monopolistic competition?
In perfect competition, the product offered is standardized whereas in monopolistic competition product differentiation is there. In monopolistic competition, average revenue (AR) is greater than the marginal revenue (MR), i.e. to increase sales the firm has to lower down its price.
What are the similarities between monopoly and monopolistic competition?
Like monopolies, the suppliers in monopolistic competitive markets are price makers and will behave similarly in the long-run. Also like a monopoly, a monopolistic competitive firm will maximize its profits by producing goods to the point where its marginal revenues equals its marginal costs.
What characteristics does monopolistic competition have in common with a monopoly?
What characteristics does monopolistic competition have in common with a monopoly? Both market structures involve a differentiated product so firms face downward-sloping demand curves, equate MC and MR, and charge a price above MC.