Chapter+7+HW


 * Read pg 151-154...Answer questions # 1-4 and define all vocabulary. **

//**Perfect Competition**// - A market with a large number of firms all producing the same market. **//Commodity//** - A product that is considered the same regardless of who makes or sells it**//. Barriers To Entry//** - Something that makes it hard to start in a new market**//. Imperfect Competition//** - A market that does not meet the qualifications of a perfect competition**//. Start-Up Costs//** - The original expenses needed to start a business

1. Some characteristics of a perfect competition are it needs to be something the consumer needs or has always liked such as the soda industry a lot of companies are in it because people always want soda. 2. Start-up costs discourage entrepreneurs from entering a market because they their scared of spending the money without knowing 100% if they will get their money back or not. 3. Two examples of barriers to entry in the magazine market are the cost of buying paper to print on, and obviously ink. 4. Perfectly competitive markets must always deal in commodities because the product needs to be very well needed and useful.

1. A firm with market power can change prices and output. 2. Government usually approves natural monopolies because it helps the economy and their aren't many. 3.The three different forms of price discrimination are discounts, limits, and illegal forms. 4. Economies of scale are things that cause the price per unit to fall.
 * pg 164 #1-4 **

1. ﻿The four conditions of monopolistic competition are many firms, few barriers to entry, slight control over price,and differentiated prices. 2. Economists determine whether a market is an oligopoly if they notice firms are overtaking their industry. 3. Three examples of non-price competition are quality, physical, and image. 4. Price fixing and collusion help producers because it sets a price level all the producers can abide by.
 * Answer questions #1-4 on pg 171 **


 * Read pg 172-176...Answer questions #1-4 on pg 176. **

1. Price Discrimination. 2. Perfect competition. 3. Oligopoly. 4. Commodities. 5. Patent. 6. Natural Monopoly. 7. Collusion. 9.
 * Chapter 7 Review Pg 178 #1-7, 9-14**