AP REVIEWER 3RD QRT

This is when a small number of companies control most of the market.

Oligopoly

when companies keep lowering their prices to compete with each other to attract more customers.

Price war

when companies agree to set a common  price for their
products.

 Price collusion

takes place when companies watch each other's
prices closely and end up charging the same amount without formal
agreement

Tacit prince collusion

When companies agree to charge a uniform price
or same price

Explicit prince collusion

This is when only one company controls the entire market. There's no competition, and the company can set prices however they want because they are the only option. Think of a utility company like water or electricity in some areas.

Monopoly

 products that serve a common purpose

Close substitutes

happens when a producer lowers the price

of its product to the level that potential competitors cannot match

Cut- throat competition

when it's better for just one company to
run the business because having more companies would be wasteful.

NATURAL MONOPOLY

A geographical monopoly happens when only one
company operates in a specific area because there
are no other companies nearby.

GEOGRAPHICAL MONOPOLY

 A technological monopoly happens when a company gets special permission from the government to be the only one allowed to make or sell a new product.

TECHNOLOGICAL MONOPOLY

Happens when the government owns and runs a business or service, and no private companies are allowed to Compete.

Government monopoly

• In this market, there are many companies, but each one sells slightly different products. Even though there are a lot of competitors, each company has some control over its price because their product is a bit unique. Examples include restaurants or clothing stores.

Monopolistic Competition

This is when there are lots of companies selling exactly the same product. Because of the large number of sellers, they can't control prices and must sell at the same price as everyone else. Examples include farming (like selling wheat or corn).

Pure Competition:

determined by the overall demand and supply in the market, rather than any single seller’s influence. This means sellers have no power to set their prices because many other businesses offer similar products.

Price-takers