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Unit 4: Imperfect Competition

AP Microeconomics — Note Packet

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Key Terms

Imperfect Competition

Markets where firms have some _______ _______, meaning they can influence the price of their product.

Market Power

The ability of a firm to _______ the price of its product.

Barriers to Entry

_______ that prevent new firms from easily entering a market.

Natural Monopoly

A market where a single firm can serve the entire market more _______ than multiple firms.

Monopoly

A market structure where a _______ firm is the entire market, acting as a _______ _______.

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