What do you call a product that is the same no matter who produces it such as farm produce?
commodity. a product that is the same no matter who produces or sells it, such as petroleum, notebook paper, or milk.
How can start-up costs influence whether or not someone enters a market?
Start-up costs discourage entrepreneurs from entering a market by how expenses that have new businesses must pay before the first product reaches the customers, if the prices are high then that will discourage entrepreneurs.
What are characteristics of monopoly Chapter 7 Section 2?
What are the characteristics of a monopoly? Monopolies are characterized by a single firm, no variety in product, total barriers to entry, and complete control over prices.
What is the name for a formal organization of producers that agrees to coordinate prices and production called?
cartel A cartel is an association by producers established to coordinate prices and production.
What are the factors affecting price of agricultural product?
Factors leading to rise of prices of agricultural products mainly include tension of supply-demand relationship, promotion of production cost and circulation cost, and speculation of Refugee Capital (Hot Money).
What would happen if the number of firms producing a commodity in the economy increases Mcq?
The good market is equal. As a result, if the number of firms in the market grows, the total value or supply of the market will inevitably increase.
What are the main factors that affect the amount of business competition?
From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location.
What are the major factors that become barriers to entry in the new industry?
There are seven sources of barriers to entry:
- Economies of scale. …
- Product differentiation. …
- Capital requirements. …
- Switching costs. …
- Access to distribution channels. …
- Cost disadvantages independent of scale. …
- Government policy. …
- Read next: Industry competition and threat of substitutes: Porter's five forces.
What is oligopoly in economics?
Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.
Why government grants patented monopolies?
In some cases of government-granted monopolies, the government identifies itself as the sole provider of the good or service. Government-granted monopolies are usually established because they are perceived to be the best option for producers and consumers.
What is the name for a formal organization of producers that agrees to coordinate prices and production called Brainly?
A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in order to regulate or manipulate prices.
What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits?
Step 1. If each of the oligopolists cooperates in holding down output, then high monopoly profits are possible. However, it is a dominant strategy for all oligopolists to act out of self interest and expand output to grab extra profit, irrespective of what the other firms do.
What are the 4 factors that affect price?
Four Major Market Factors That Affect Price
- Costs and Expenses.
- Supply and Demand.
- Consumer Perceptions.
- Competition.
What are the causes of fluctuation in agricultural prices?
Some of the factors which affect the magnitude of intra-year seasonal fluctuations in agricultural prices are:
- Seasonal nature of production.
- Perishability of products.
- The bulkiness of products.
- Low bargaining power of farmer-sellers.
- The low staying power of farmers.
- Seasonal nature of demand for certain products.
What would happen if the number of firms producing a commodity in the economy decreases?
The aggregate supply curve would shift to the right.
When the quantity demanded of a commodity rises due to a fall in price it is called?
Increase in quantity demanded of a commodity due to a fall in its price is called. A. Increase in demand.
What are some factors that affect competition?
From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location.
What is competitive factor?
Competitive factors are the skills and capabilities that differentiate a firm from its competitors. As a prerequisite to any strategic planning, these competitive factors must first be identified and evaluated as to their relative importance to achieving a firm's strategic goals.
What are the 4 main types of barriers to entry?
There are 4 main types of barriers to entry – legal (patents/licenses), technical (high start-up costs/monopoly/technical knowledge), strategic (predatory pricing/first mover), and brand loyalty.
What are the 3 types of barriers to entry?
Three types of barriers to entry exist in the market today. These are natural barriers to entry, artificial barriers to entry, and government barriers to entry.
What is the difference between monopoly and monopolistic competition?
A monopoly is the type of imperfect competition where a seller or producer captures the majority of the market share due to the lack of substitutes or competitors. A monopolistic competition is a type of imperfect competition where many sellers try to capture the market share by differentiating their products.
What is the difference between oligopoly and monopolistic competition?
Oligopoly: An Overview. A monopoly and an oligopoly are market structures that exist when there is imperfect competition. A monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods.
Why do state owned monopolies in South Africa find it difficult to make an economic profit?
Answer. Monopolies restrict free trade and prevent the market from setting prices. … Price fixing: Since monopolies are lone providers, they can set any price they choose. That's called price-fixing.
What is the difference between monopolistic competition and oligopoly?
Under monopolistic competition, many sellers offer differentiated products—products that differ slightly but serve similar purposes. By making consumers aware of product differences, sellers exert some control over price. In an oligopoly, a few sellers supply a sizable portion of products in the market.
What is the name for a formal organization of producers that agrees to coordinate prices and production called an oligopoly price fixing a cartel collusion?
Economics Chapter 7 Terms
| A | B |
|---|---|
| cartel | a formal organization of producers that agree to coordinate prices and production |
| predatory pricing | selling a product below cost to drive competitors out of the market |
| antitrust laws | laws that encourage competition in the marketplace |
What is a series of competitive price cuts that lowers the market price below the cost of production?
Econ 7
| Question | Answer |
|---|---|
| Price war | Series of competitive price cuts that lowers the market price below the cost of production |
| Collusion | Illegal agreement among firms to divide the market, set price, or limit production |
| Price fixing | Agreement among firms to charge one price for the same good |
How does a monopolistic competitor choose its profit-maximizing quantity of output and price?
A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.
How does a monopolistic competitor choose its profit-maximizing quantity of output and price quizlet?
A monopolistic competitor chooses its profit-maximizing quantity of output and price as some combination of price and quantity along its perceived downward sloping demand curve.
What are the factors that affects price changes?
Supply and demand for products, services, currencies, and other investments creates a push-pull dynamic in prices. Prices and rates change as supply or demand changes. If something is in demand and supply begins to shrink, prices will rise. If supply increases beyond current demand, prices will fall.
In what situation does the producer decrease the price of product?
Cost Structure Producers with lower costs will always be able to supply more of a product at a given price than those with higher costs. Therefore, a decrease in producers' costs will increase the supply. Conversely, if production costs increase, the quantity supplied at a given price will decrease.