Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
market power monopoly monopolist barriers to entry natural monopoly network good product differentiation oligopoly monopolistic competition price discrimination markup Lerner index antitrust law | Imperfect substitutability across varieties of a product. Market structure with a large number of firms selling differentiated products. A good whose value to each consumer increases with the number of other consumers of the product. Laws designed to promote competitive markets by restricting firms from behaviors that limit competition. A market served by only one firm. A market in which it is efficient for a single firm to produce the entire industry output. Pricing strategy in which firms with market power charge different prices to customers based on their willingness to pay. Factors that prevent entry into markets with large producer surpluses. Market structure in which a few competitors operate. A measure of a firm’s markup, or its level of market power. A firm’s ability to influence the market price of its product. The percentage of the firm’s price that is greater than its marginal cost. The sole supplier and price setter of a good on the market. |