Introduction to the Four Market Models quiz #1 Flashcards
Introduction to the Four Market Models quiz #1
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In which of the four market models do the demand curve and the marginal revenue curve diverge? Demand and marginal revenue diverge in monopolistic competition, oligopoly, and monopoly. In perfect competition, demand and marginal revenue are the same because firms are price takers. What is a fixed ratio schedule in the context of market models, and how does it relate to the number of suppliers in each model? A fixed ratio schedule is not directly related to market models in microeconomics. Instead, market models are defined by the number of suppliers: perfect competition has infinite suppliers, monopolistic competition has many, oligopoly has a few, and monopoly has one. What is the primary factor used to define different market structures in microeconomics? The primary factor is the number of suppliers in the market. How does the number of suppliers in perfect competition compare to monopolistic competition? Perfect competition has almost infinite suppliers, while monopolistic competition has many but not infinite suppliers. In an oligopoly, how many suppliers are typically present? An oligopoly typically has a few suppliers, which can range from two to about ten. What is unique about the number of suppliers in a monopoly? A monopoly is unique because it has only one supplier in the market. Why is it important to keep the summary sheet handy during the study of market models? The summary sheet helps compare and contrast the different market structures as you progress through the chapters. Does the summary sheet provide all the information needed about market models? No, the summary sheet highlights major topics but does not include all details; further depth is covered in the lessons. Which market model is the main focus at the beginning of the unit? Perfect competition is the main focus at the beginning of the unit. What will students do with the summary sheet at the end of the chapter? Students will revisit and fill in the summary sheet to consolidate their understanding of the market models.