POD B Final Review

A market structure in which a large number of firms all produce the same product

Single producer supplies a unique product that has no close substitutes

Single producer owns a key natural resource - only stone quarry in a town

Gov't grants single firm or individual exclusive right to produce a good or service - patent/copyright, public franchise, licenses

Single firm can supply a good or service more efficiently and at a lower cost than two or more firms and competing firms can - utility industries

A market structure in which a few large firms dominate a market

Pattern of pricing in which one firm regularly announces price changes that other firms then match

Producers get together and make agreements on production levels and pricing

A market structure with many competitors selling differentiated products. Barriers to entry are low.

Using product differentiation and advertising to attract customers

a situation in which a market left on its own fails to allocate resources efficiently

Benefits falls on someone other than the producer or consumer

immunizations

Cost that falls on someone other than the producer or consumer

Factory pollution