Changes

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(B) Perfectly Contestable Markets- you may be the only seller, but competition is always threatened.

(C) Oligopoly-few companies, high barriers to enter, similar goods.  

(C) Oligopoly- few companies, high barriers to enter, similar goods.  

(D) Cartel-an agreement between companies, which produce similar goods, that decreases supply and competition.

(D) Cartel- an agreement between companies, which produce similar goods, that decreases supply and competition.

(E) Monopoly-when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).  

(E) Monopoly- when you own the whole market of a certain good. You are the only one that produces a certain widget (no competition).  

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."  

3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need."