Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
What is a market structure characterized by at least some competition between producers?
Oligopoly: This is a state of limited competition where a small number of producers or sellers share the market. Pure competition: This refers to a wide range of market where competitors are selling the same product.
Which type of market structure is most closely associated with fast food?
Econ Test 3
| Question | Answer |
|---|---|
| If competition is inconvenient and impractical, what kind of monopoly tends to develop? | natural monopoly |
| Jeans and fast food restaurants would most closely be associated with which of the following markets? | Oligopoly |
| This type of market is the easiest to enter | Perfect Competition |
Which tool helps a producer set up an efficient system of production?
Answer: A production possibilities frontier graph.
Which is the main force behind decisions made by producers in a free-market system?
Costs are subtracted from revenues. Which is the main force behind the decisions made by producers in a free-market society? the profit motive Which best states the purpose of using a production possibilities frontier? setting up efficient production Which is a market structure that can exist in a free-market system? monopolistic competition
Which is the best description of a free market economy?
The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment. Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions.
What happens when the free market is regulated?
When free market behavior is regulated, the scope of the free market is curtailed but usually not eliminated entirely, and voluntary exchanges may still take place within the framework of government regulations.
Which is market structure characterized by at least some competition between producers?
Which is a market structure characterized by at least some competition between producers? command economy Which describes a situation where competition between producers exists? Two or more producers are trying to sell the same good or service to the same consumers.
