Exam 10: Identifying Markets and Market Structures

-In Exhibit J-2, which of the following graphs of a firm's ATC best represent(s) the greatest possibility for competition?

Monopoly is a market structure with

Which characteristic does not help define a monopoly?

As more firms enter the market,

The market structure in which there is only one producer is called

As new firms enter a market, the existing firms' demand curves will shift to the right.

If two goods are strong substitutes, cross elasticity is

Suppose there are only two steel firms in the steel industry and their prices are equal to or very close to their ATCs. This circumstance suggests that

In perfect competition, entry and exit are difficult, but goods are homogeneous.

Suppose Jack Weldon came up with a novel idea of making lamps out of recycled automobile tires. His firm, No-Skid Lamps, works three shifts a day trying to keep up with demand. Attracted by its success, other firms copy the idea and produce similar lamps. As a result, No-Skid Lamps' demand curve

Typically, perfect competitors advertise their specific goods.

The goods produced by oligopolists are close substitutes.

If cross elasticity between two goods is infinite, the goods are

Which characteristics best describe oligopolies?

The essence of an oligopoly market structure-the factor that distinguishes it from all other structures-is

Which of the following undermines the effectiveness of a barrier to entry?

Suppose we find that the cross elasticities between two goods are relatively high, and their cross elasticities with goods outside the market are zero. From this we can conclude that these two goods

The monopolist's demand curve is identical to

Every time new firms enter a monopolistic competitive market, the firms already in the market find their

The most important characteristic that differentiates one market structure from another is the