Econ Chapter 9: Monopolistic Competition and Oligopoly

____________ Are lower in monopolistically competitive markets than in markets in which there is a monopolist

Entry barriers

A relatively large number of producers in the market A differentiated product Sellers with some control over the prices they charge Relatively easy market entry and exit

To be monopolistically competitive, a market needs these characteristics

_____________To prevent companies from unfairly restricting competition in a market Sherman act Clayton act Federal trade commission act

Antitrust laws

____________ ____________ Made illegal mergers and acquisitions that lessen competition

Clayton act

Establish federal trade commission Outlawed unfair methods of competition Outlawed unfair/deceptive acts or practices

Federal trade commission act

_______________ __________ A market structure characterized by a relatively large number of sellers producing a differentiated product, for which they have some control over the price they charge, in a market with relatively easy market entry and exit

Monopolistic competition

___________ _______________ A situation in which a change in the strategy followed by one producer will likely affect the sales, profits, and behavior of another producer

Mutual interdependence

In which market model does mutual interdependence exist?

Oligopoly

_____________ A market structure characterized by a few large producers, of either standardized or differentiated products, operating in industries with extensive entry barriers. These producers are price makers and behave strategically when making decisions related to the features, prices, and advertising of their products

Oligopoly

__________ ___________ The strategy of distinguishing one firm's product from the competing products of other firms

Product differentiation

__________ ___________ Made illegal contracts, organizations, or actions that restrict trade

Sherman act