1. Unit 2 Lesson 4 Market Structures Part 2

2. Re-Cap - Market Structures Perfect C - identical products, many buyers/sellers, P-taker Monopolistic C - like Perfect, except products similar not identical Oligopoly - small # sellers, P leaders, interD Monopoly - 1 seller, P-maker

3. Monopoly

4. Monopoly Examples De Beers had a near- monopoly over the diamond trade until a few years ago. Major League Baseball has a monopoly in the U.S. over professional baseball. GameStop has a near- monopoly over the used-game market.

5. 1. Which is not a condition required for perfect competition? A) Identical Products B) Well informed buyers and sellers C) Buyers and sellers acting independently D) Firms are price makers

6. 2. Monopolistic competition is like perfect competition except A) Buyers & sellers are not well-informed. B) Products are not identical. C) Buyers and sellers don’t act independently. D) There are barriers to enter and/or exit the market.

7. 3. Which is the most likely characteristic of an oligopoly? A) low overhead B) price leadership C) price taker D) identical products

8. 4. The existence of this type of monopoly results in lower overall costs. A) Natural B) Technological C) Government D) Public

9. 5. Which market structure or structures are likely to use nonprice competition? A) Perfect Competition B) Monopolistic Competition C) Oligopoly D) A & B E) B & C