Exam 10: Identifying Markets and Market Structures

If a perfectly competitive firm raises its price,

If advertising makes a firm's demand curve more inelastic, it is probably because

Monopolies, whose market position is based on exclusive access to resources, eventually lose their monopoly power when there is

When you watch a professional football game, you may see the Nike swoosh on the players' jerseys. When you see people on the street, you may see people wearing Nike T-shirts or Nike shoes. It seems, at times, most everybody sports that swoosh. You are likley to say: "Gosh, Nike must be a monopoly." But think twice. Is it? To define the market it's in, it would be most helpful if you had information concerning

Market structures are defined by all of the following except the

The reason why firms in perfect competition do not advertise is because

Judy's Gymnastics is one of a number of firms in an area offering children's gymnastics programs. Judy's advertises that her program is different from all the others because of the classical music she plays during classes. Judy's advertising campaign is

Historically, firms charged with monopolizing their markets often successfully argue in court that

Baking soda, a common household item, is produced from a mineral deposit called sod aash. There is only one soda ash deposit in the United States, and it is owned by the Leg and Plier Baking Soda Company. It is reasonable to describe this firm as a(n)

For a monopoly, the entry of new firms is difficult, but not impossible.

Fred Monroe is a fisherman in the perfectly competitive fish industry in northern Minnesota. After years of experience, he knows that the demand curve for the fish he sells is

Richard raises Rhode Island Red chickens. Consumers, when buying chicken in the supermarket, view all other types of chickens as perfect substitutes for the Rhode Island Red. There are no barriers to entry in the chicken industry and, as a result, there are many, many chicken producers. An economist knows that

Historical note: Andrew Carnegie became an industrial mogul by consuming or buying out his competition in the _________ industry.

Why would the government create monopoly power by granting a firm a patent that prevents other firms from competing with the patent holder?

Two goods must have infinite cross elasticities to be considered as belonging to the same market.

If a shoe monopoly experiences an outward shift in its demand curve, the industry demand curve for shoes must have

A distinguishing characteristic of a natural monopoly is that

Market power refers to the ability of a firm to set its product price.

Clorox Bleach and generic brands have the exact same proportions of chlorine and other active ingredients. The reason that people continue to purchase Clorox at twice the price of the generic brand is the

First and foremost, a market consists of