MICROECON EXAM 3.
Built around real course units and objectives!
Perfect competition - Answer: Many sellers
Homogeneous good
Free entry
Monopoly - Answer: One seller
No substitutes
Strong barriers to entry
Monopolistic competition - Answer: Many sellers
Close substitutes but differentiated
Easy entry
Natural monopoly - Answer: a monopoly that arises because a single firm can supply a
good or service to an entire market at a smaller cost than could two or more firms
Nonprice competition - Answer: emphasizing factors other than price to distinguish a
product from competing brands
Oligopoly - Answer: Few sellers
Product MAY be homogeneous
Some barriers to entry
Dominant strategy - Answer: Best choice no matter what the other person decides
Mutual interdependence - Answer: One decision makers outcome depends on both their
choice and at least one other decision maker
APPHIA – Crafted with Care and Precision for Academic Excellence. 1
Built around real course units and objectives!
Perfect competition - Answer: Many sellers
Homogeneous good
Free entry
Monopoly - Answer: One seller
No substitutes
Strong barriers to entry
Monopolistic competition - Answer: Many sellers
Close substitutes but differentiated
Easy entry
Natural monopoly - Answer: a monopoly that arises because a single firm can supply a
good or service to an entire market at a smaller cost than could two or more firms
Nonprice competition - Answer: emphasizing factors other than price to distinguish a
product from competing brands
Oligopoly - Answer: Few sellers
Product MAY be homogeneous
Some barriers to entry
Dominant strategy - Answer: Best choice no matter what the other person decides
Mutual interdependence - Answer: One decision makers outcome depends on both their
choice and at least one other decision maker
APPHIA – Crafted with Care and Precision for Academic Excellence. 1
