Market Structures in Microeconomics Quiz

Large number of firms with identical products and easy entry/exit.

Firms have control over price due to product differentiation.

Single seller with no close substitutes.

Firms' decisions depend on actions of others.

Non-price competition common; advertising, branding, etc.

Condition hindering new firms' entry.

Firms likely to engage in collusion due to few players.

Numerous firms in the market.

Primary goal: profit maximization in perfect competition.

Highest level of consumer surplus due to competitive prices.

Example: electricity distribution.

Setting varied prices for same product in different markets.

Likely to exhibit economies of scale due to large size.

Market with low barriers to entry.

Monopolies often lead to allocative inefficiency.