Economists use models to discuss market behavior. There are four basic market structures or models under which business and consumers compete through a system of prices. Perfect competition is a….
Market Structures Study Guide
Teacher True/False Indicate whether the statement is true or false. Chaplain Ron Misacts, 1. Perfect competition requires a market structure with freedom for firms to enter or leave the market. 2. Oligopoly is a market structure with one very large firm. 3. A government monopoly is a monopoly based on ownership or control of a manufacturing method or process. 4. The Clayton Antitrust Act was the first significant law against monopolies in the United States. 5. A condition of perfect competition is characterized by product fermentation. 6.
Non-price competition is the use of advertising, giveaways, and other promotional campaigns to win customers. 7. Market failure can occur when resources do not move freely from one industry to another. 8. Economists describe an unintended side effect off business activity as an externalities. 9. The United States government uses taxes to reduce the effects of negative externalities. 10. Corporations selling stock to the public must disclose their financial and operating information to both the public and the Securities and Exchange Commission. Completion Complete each statement. Inadequate 11. Ay enable a business to influence politics by Economics Chapter 7: Market Structures Study Guide with Answers By Schrodinger 9 12. And that are uninformed about conditions and opportunities in a particular market can lead to market failure.