Unit 5 - Principles of Business

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1. What is perfect competition?

  • Buyer dictates terms to suppliers
  • A market structure showing some but not all features of competitive markets.
  • Where no participants are large enough to have market power to set the price of n identicle product.
  • Product differentiation
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Other questions in this quiz

2. What does "Monopoly" mean?

  • When a specific organisation is the only supplier of a particular commodity.
  • Where one buyer interfaces with many sellers.
  • Where many businesses sell products that are differentiated from one another.
  • A market that is dominated by a small number of sellers.

3. What is imperfect competition?

  • A market structure showing some but not all features of competitve markets.
  • Large number of buyers and sellers
  • No barriers to market entry or exit.
  • Rational buyers

4. What is a "Monopsony"?

  • A market in which only one buyer interfaces with many sellers, the buyer dictates terms to the suppliers.
  • When a specific organisation is the only supplier of a particular commodity.
  • Market is dominated by a small number of sellers.
  • Product differentiation

5. What are the features of Perfect Competition?

  • Sheep
  • large number of buyers and sellers, no barriers to entry or exit, perfect information,zero transaction costs, rational buyers, no externalities
  • Ducks
  • incorporates monopolies, monopolistic competition

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0161go.and.do.one

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no one does this in business STOOPID

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