COMPETITION AND COMPETITIVE MARKETS RECAP

ECONOMICS
MR. SCHEEL

1. Define Perfect Competition.

2. What are the characteristics of perfect competition?

3. Why is there perfect competition with many buyers and sellers in the market?

4. Why must buyers and sellers act independently?

5. Describe the “apples and oranges” theory?

6. What is a monopoly?

7. What would happen if buyers did not receive information on the goods and services they buy?

8. Why is it important for sellers to have the freedom to enter and leave markets?

9. Describe the degree of difficulty for sellers to leave or enter markets.

See Figure 6.1 on p. 119

10. Which market structure involves the most competition?

11. Which market structure has the least competition?

12. What is monopolistic competition?

13. Describe the similarities of monopolistic and perfect competition.

14. What is product differentiation?

15. How do sellers use product differentiation?

16. How do sellers use nonprice competition?

17. What are the methods to using nonprice competition?

18. Explain the importance in developing “brand name” loyalty?