#1
Which market structure is characterized by a large number of sellers, homogeneous products, and ease of entry and exit?
Perfect Competition
ExplanationMany sellers, identical products, easy entry/exit.
#2
What is an example of a non-price competition strategy?
Discounts and promotions
ExplanationCompetition not based on price but other factors.
#3
What is a barrier to entry in a market?
Factors that make it difficult for new firms to enter a market
ExplanationConditions hindering new firm entry.
#4
In which market structure do a few large firms dominate the market and influence prices?
Oligopoly
ExplanationSmall group controls market, influences prices.
#5
What is a characteristic of a pure monopoly?
One seller with no close substitutes
ExplanationSingle seller, no close alternatives.
#6
What is a characteristic of monopolistic competition?
Product differentiation
ExplanationDiverse products, some differentiation.
#7
Which competitive strategy focuses on offering unique and high-quality products to a specific market segment?
Focus Differentiation
ExplanationConcentrated on unique, quality products.
#8
In an oligopoly, how do firms often compete?
By emphasizing product differentiation
ExplanationCompeting through product uniqueness.