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