Question

1. The four market structures are and firms are producing a firms are produc 2. Perfect competition is a market structure in which - - product and entry is 3. Monopolistic competition is a market structure in which ing a product and entry is 4. Oligopoly is a market structure in which product and entry is - 5. Monopoly is a market structure in which firms are producing a firm supplies a product and entry 6. Oligopoly is the only market structure in which firms are 7. When there are large economies of scale, a -- monopoly can occur. 8. When buyers perceive different sellers' products to be identical, we say the products are when buyers perceive different sellers' products to be different, we say the products are 9. The idea that potential competition can force even monopoly firms to behave as if they were perfectly competitive is called the theory of 10. Firms that are price makers are found in which market structures! 11. In analyzing business behavior, economists usually assume that the firm's objects 15 10 12. The demand curve facing the perfectly competitive lirin is _____ 13. The demand curves facing firms in all types of markets cacer porfect competition 14. List Uiciwo criteria you can use to figure out what outpuilo clicalinaths 17est pohl in suallar is likely to 1S Per the three market structures listed below, descrito how much use. Prieci competition Monopolistic competition Monopoly t. Explain what factor is nost likely to detennin with a fini scil.ng it lising i g pedusa le cradver.

Answer 1

Since in the perfectly competitive firm, there are large number of buyers and sellers and they sell identical product and price is determined by industry and not by the firm. So any firm or any buyers can buy or sell any quantity of goods at the market price. It means there is no effect of the individual demand or supply of goods on the market price. It means production decisions cannot affect the market price.

A monopolistic firm is a maker and profit-maximizing condition is

MR=MC

A Monopolistically competitive firm

Since a monopolistic firm is that form of market in which there is large number of buyers and sellers and firm sells differentiated product based on quality, size, shape etc, therefore product is not homogeneous. Since firm is price maker but firm does not compete on the price but they compete in the market based on size, quantity quality etc.

Since in the oligopoly there are few firms who control whole markets, therefore in this market structure firms are dependent on the action of their rival firms.

A monopoly firm is a kind of market structure in which there is only one seller and many buyers, therefore a monopolist firm has market power both in the short-run as well as in the long-run.

1.

The four market structure are Monopoly; Monopolistically competitive; Perfectly competitive and Oligopoly.

2.

Perfect competition is a market structure in which large number of firms are producing a standardized product and entry is free.

3.

Monopolistic competition is a market structure in which large number of firms are producing a differentiated product and entry is free.

4.

Oligopoly is a market structure in which few firms are producing a differentiated product and entry is restricted.