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What is a market structure in which only a few firms produce the same product?
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What is imperfect competition?
a market structure in which a large number of firms all produce the same product
Oligoply is a market structure with a great deal of?
Is a market structure characterized by a few large firms that produce either standardized or differentiated product, where entry into the industry is difficult, and where there is a great deal of interdependence between the decisions made by the firms
Which features is significant for market structure?
Significant features for a market structure include the number of firms and their scale, market share of the bigger firms, the nature of costs, extent of product differentiation, turnover of customers, and vertical integration.
The market structure that is characterized by a small number of large firms that have some market power is called?
The market structure that is characterized by a small number of large firms that have some market power is called
What is a market structure in which a few large firms dominate a market?
a monopoly
Firms in which market structure hold the most market power?
Monopoly
Firms in Which market structure holds the most market power?
Monopoly
What is the difference between monoplistic compition and perfect compition?
Monopolistic competition versus perfect competition in the long run: The most important difference between monopolistic competition and perfect competition is product differentiation. COMPARISON: Perfect competition: the long run equilibrium where MR=MC=P=AR=AC (at the minimum); Monopolistic competition: the long run equilibrium where MR=MC < P = AC (above the minimum)); This is a rather common question within the Market Structure topic in Economics. In Market Structure, the Perfect Competition (PC) and the monopoly are considered extreme market structures, while other market structures also exist, like the oligopoly and the monopolistic competition(MC). Before understanding the differences of these 2 market structure. It's important to realize that the PC market structure consists of many firms or sellers in an area or industry. The monopoly on the other hand, consists of a single seller. A good example, would be someone selling things on an island. The differences between the PC and the monopoly market structure are (1) Ease of entry and exit for firms (2) Type of product sold (3) Type of firm (4) Profit in short run and long run. First of all, is (1) ease of entry and exit for firms. For the PC market structure, new firms can easily enter the market structure, as there are no barriers of entry. This means that new firms who knows that there is a profit to be made in some area, location or industry can easily set up a new shop there. For the monopoly, there is substantial or high barriers of entry preventing new firms from entering the market structure. These barriers of entry are created by existing or dominant firms in a monopoly to prevent new firms or competitors to enter the market structure. The second difference is (2) the type of product sold. For a PC market structure, the product sold is similar. This means that what one seller is selling, is what another seller is selling. Hence products in the PC market structure are perfect substitutes. We also assume that in PC market structure, the consumers have perfect knowledge of the product. This means that the consumers are aware of the price sold in another shop. For the monopoly, the product sold are not perfect substitutes, and can be rather unique. The third difference is the (3) type of firm. Since the PC market structure faces the above 2 characteristics, this means that the firm in this market structure are powerless to influence the price. This means they have no control to increase the price of the product. This is because if they increase the price of the product, and there are perfect competition, firms who increase the price, will lose out to other firms. Hence firms in PC market structure are considered to be Price Takers. Firms in monopoly market structure on the other hand, are Price Makers. This means that they can influence the price of their product sold to consumers. The monopoly is able to do that, as the monopolist is the single seller in a market. The last difference is the (4) existence of profit. For the PC firm, there is a possibility to earn abnormal profit in the short run, but not possible in the long run. This is because, in a PC market structure, when existing firms earn profit, new firms will enter the market structure, shrinking the profit. For the monopoly, there is a possibility to earn abnormal profit in short run and long run, as there is the existence of barriers of entry to prevent new firms to enter the market.
The general willingness of firms to produce and sell a product at various prices is?
The general willingness of firms to produce and sell a product at various prices is known as supply.
What is markets in which firms sell their output of goods and services?
The product market is the market in which firms sell their output of goods and services.
What is demand conditions?
The market structure of the market I.e. Barriers to entry #of firms Diversification
What kind of market structure is gm?
The market structure is called oligopoly. Oligopoly is a market structure characterized by a small number of relatively large firms that dominate an industry.
