Market Structure - the type of market, or environment, in which businesses…
Market Structure - the type of market, or environment, in which businesses operate.
- What is perfect competition?
Many businesses must sell identical products to
- What is monopolistic competition?
A lot of businesses sell similar products that
have only a few differences
- What is an oligopoly?
There are relatively few sellers determine prices
- Explain the difference between
a monopoly and a regulated monopoly.
One is controlled by a supplier and goods are
- Explain the purpose of U.S. legislation that regulates businesses.
It keeps businesses in check.
Roles of Government
• Robinson-Patman Act (1936)
Prohibits price discrimination so that all businesses purchasing similar
amounts and types of products would be charged the same price
• Celler-Kefauver Antimerger Act (1950)
Protects competitors from takeovers if the acquisition would
• Sherman Antitrust Act (1890)
Prevents monopolies from forming and hinders price fixing
• Clayton Act (1914)
Prevents specific business actions that might restrict competition,
such as tying agreements and exclusive agreements
• Federal Trade Commission Act (1914)
Created a regulatory agency, the Federal Trade Commission (FTC),
which monitors business activities to prevent unfair competition
A market is controlled by one supplier, and there are no substitute goods or services readily available
There are relatively few sellers,
and industry leaders usually