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Kipish [7]
4 years ago
7

Match each economic term with its description

Social Studies
1 answer:
borishaifa [10]4 years ago
3 0
<h2>The given economic terms can be matched with their descriptions as below:</h2>

  • Monopoly: There is a single seller in the market.

In a monopolistic market, a specific commodity it sold by only one player. This allows the seller to manipulate the prices of the commodity the way he wants.

  • Perfect competition: There are no barriers to entry in the market.

This market is open to all and every single player in the market is free to trade in any legitimate commodity that he wants to trade in.

  • Collusion: Three companies secretly enter into a price agreement.

In order to achieve the state of profit for all, three companies come together and unanimously decide the prices of their products so as to impact the market and to make the other players in the market reduce the price of their products.

  • Oligopoly: Every company in this market structure is aware of the actions of the other companies.

The players in this market are closely spaced and are familiar with the strategies of each other.

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