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Chapter 7: Market Structures & Failures

Horizontales
when producers meet and set production levels and prices. They have total price control and no competition
it is easy to start a business in this type of market
goods and services that are not provided by the market system
This problem arises when private companies have to provide pubic goods
supply and demand determine prices in this type of market; which is the most competitive market structure
this market structure is highly competitive, but market differentiation-brand names and advertising--give large companies an advantage. It is the most common market structure
number of producers, control over prices, ease of entry and similarity of products determine this
when goods and services are not allocated in the most efficient way
in this market structure, only a few firms provide this good or service.
governments issue these so that a company that creates a product can make a profit
Verticales
This tries to limit negative externalities and encourage positive externalities
this focusus on four factors: physical characteristics, location, service and status and image
this has positive or negative consequences for someone other than the producer and consumer
a contract issued by the government to provide a good or service
the dominant firm sets the price and the other firms follow
these laws have been passed to prevent monopolies
in this market structure, producers have the most market power. They control the supply and the price
a product that is exactly the same no matter who produces it
an organization of producers established to set production and price levels for a product