Economic Principles and Market Structures Quiz

Large number of buyers and sellers lead to no individual entity influencing the market.

Numerous competitors ensure firms can't manipulate prices individually.

Exclusive control over a unique product eliminates competition.

A small number of firms dominate the market, leading to strategic interactions.

Identical products and perfect information ensure no firm has an advantage.

Differentiated products allow firms to exert some control over pricing.

Single seller dominance enables significant control over market dynamics.

Firms' actions are influenced by competitors' moves due to product differentiation.

Firms fear price wars due to the close competition and prefer non-price strategies.

Differentiated products in this market allow for varying pricing strategies.

High initial investment costs make it economically efficient for one firm to serve the market.

Regulations can create hurdles preventing new entrants from competing.

In perfect competition, firms sell at market price, making marginal revenue equal to price.

Few dominant firms may collude to maximize profits, affecting the market.

Low barriers to entry and exit ensure competition can enter or leave freely.

Consumers are willing to buy any quantity at a fixed price, making demand infinitely elastic.

Low barriers allow new firms to enter or existing ones to exit freely, promoting competition.