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How do economists measure the degree of competition in a market?
_Amount of control a firm or a group of firms have over the total market supply _The amount of influence a firm or group of firms have over market price _The freedom new suppliers have to enter the market
In which market type are firms considered price takers because they take the price in the market and have no control over setting a price?
Firms are considered price takers in a perfectly competitive market. In this market type, numerous small firms sell identical products, and no single firm has the power to influence the market price. Because of the high level of competition and the homogeneity of products, firms must accept the market price determined by supply and demand.
There is no control over price by firms in?
Pure competition
How do monopolistic competitive firms fare in the long run in terms of earning potential compared to other market structures?
Monopolistic competitive firms generally have lower earning potential in the long run compared to firms in other market structures. This is because they face competition and have less control over prices due to product differentiation.
Is the automotive industry considered an oligopoly?
Yes, the automotive industry is considered an oligopoly because it is dominated by a small number of large firms that have significant control over the market.
One way that a few firms can gain some control over their market?
They can gain some control over their markets by secretly cooperating with one another.
What is one way that a few firms can gain some control over their market?
Secretly cooperate with one another.!
How do economists measure the degree of competition in a market?
_Amount of control a firm or a group of firms have over the total market supply _The amount of influence a firm or group of firms have over market price _The freedom new suppliers have to enter the market
Why did some corporations seek to gain control over their market?
What they were usually after was price control and thus maximizing profits through market control.
In which market type are firms considered price takers because they take the price in the market and have no control over setting a price?
Firms are considered price takers in a perfectly competitive market. In this market type, numerous small firms sell identical products, and no single firm has the power to influence the market price. Because of the high level of competition and the homogeneity of products, firms must accept the market price determined by supply and demand.
There is no control over price by firms in?
Pure competition
How do monopolistic competitive firms fare in the long run in terms of earning potential compared to other market structures?
Monopolistic competitive firms generally have lower earning potential in the long run compared to firms in other market structures. This is because they face competition and have less control over prices due to product differentiation.
Which of the following is one way that a few businesses can gain some control over their market?
A.secretly cooperate with one another
What are the characteristic of a market structure?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry
Is the automotive industry considered an oligopoly?
Yes, the automotive industry is considered an oligopoly because it is dominated by a small number of large firms that have significant control over the market.
How much control does monopolist have over pricing?
Total control, as there is no competition the monopoly vendor can ask any price they wish. That is why monopolies are bad for society and Governments have to intervene in the capitalistic market.
Why is there no supply curve for a monopoly?
In a monopoly, there is no supply curve because the monopolist has control over the entire market supply and can set the price independently of the quantity supplied. This is different from a competitive market where multiple firms determine supply based on market forces.
