23278055
Description
Flashcards by Sophia Lynch, updated more than 1 year ago
|
Created by Sophia Lynch
over 4 years ago
|
|
| Question | Answer |
| Firms in imperfect competition are not quite price takers because... (2) | 1. There are still some barriers to entry 2. There is some product differentiation |
| What are some examples of imperfect competition? (2) | Oligopoly: few sellers, offering similar/identical products (Supermarkets/Banks) Monopolistic Competition: Many firms selling products that are similar but not identical (Films/Cafes) |
| What are the characteristics of monopolistic competition? (3) | 1. Differentiated products 2. Many sellers 3. Low barriers to entry This means zero profits in the long-run. |
| What differs between perfect competition and monopolistic competition regarding economic efficiency? | In the long-run perfect competition can be economically efficient but monopolistic competition will never be economically efficient. |
Want to create your own Flashcards for free with GoConqr? Learn more.