Microeconomics Chapter 14 homework questions

What is collusion?

Agreements between sellers to increase their market power

In which market structure do the actions of a rival have a significant impact on your operations?

Oligopoly

Patents on drugs to treat AIDS were removed in South Africa. How would the market for these drugs have been different if there had never been patents on drugs?

The drugs would not have been developed.

A market with many small sellers and a high level of product differentiation is known as

a monopolistically competitive market.

Walmart has a large aisle that displays many different kinds of toothpastes. This observation indicates that the toothpaste market is

a monopolistically competitive market.

When a company has market power, it is _____ in its market.

not a price taker

Which of the following is a characteristic of monopoly that is not present in other market structures?

there is only one seller

To avoid harm to society, the government often becomes the supplier of a good or service when the respective market

would be a natural monopoly, and the good or service is considered essential.