Competition and Market Power (HSC SSCE Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does market power refer to for a firm?
What does market power refer to for a firm?
Ability to raise prices without losing all customers
Which three factors define market structure?
Which three factors define market structure?
No. of firms, product nature, entry barriers
Why are firms price takers in pure competition?
Why are firms price takers in pure competition?
Charging above market price loses all customers
Why is advertising wasteful in pure competition?
Why is advertising wasteful in pure competition?
Products are identical & firms sell all at market price
What constrains a monopolist's pricing power?
What constrains a monopolist's pricing power?
The demand curve
What does product differentiation create in monopolistic competition?
What does product differentiation create in monopolistic competition?
Brand loyalty
What is strategic interdependence in oligopoly?
What is strategic interdependence in oligopoly?
Firms monitor and respond to rivals' behavior
Why do oligopolists avoid price competition?
Why do oligopolists avoid price competition?
Risk of price wars reducing all firms' profits
Which Australian industry is an example of oligopoly?
Which Australian industry is an example of oligopoly?
Supermarkets
What happens to prices as competition increases?
What happens to prices as competition increases?
Prices tend to fall