Ex.6. Choose an appropriate word or phrase to complete the following sentences.

Date: 2015-10-07; view: 450.

Interaction, profit, behavior, firms, market, restrict, collusion, relevant, price, picture, competition.

1. Unlike what we see in the perfectly competitive market, in monopoly there is no distinction to be made between the activities at the … level and at the firm level; they are one in the same.

2. There are many different ideas that have been developed to attempt to understand and predict the … of firms in oligopoly markets, but none of them is a general model.

3. The central feature here is that for a monopoly firm, their behavior is one of a … maker.

4. When the conditions necessary to have a perfectly competitive market do not hold, then other market structures become … .

5. Taken together, the factors provide a useful … of a market, revealing how it is likely work and the results that one would observe in this market.

6. Whenever economists discuss the workings of the market, typically there is a focus on the … of supply and demand.

7. Doing this in a market where there is but a single firm yields the situation depicted here: as compared to what we would observe in a competitive market, the monopolist chooses to … output, resulting in a higher price, and as a consequence, a higher level of … .

8. And that's the catch of monopolistic competition: many buyers, many sellers, almost same product but different branding and fierce … .

9. Both competitive and monopoly markets yield clear results in terms of the behavior of buyers and sellers, the price that will result and the nature of the interaction between … .

10. In general, economists refer to cooperative interaction as … , or alternatively, as the formation of a cartel.