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8.1 Definition of Monetary Policy Government policy concerning money and credit conditions, especially the rate of growth in the money supply and the level of interest rates

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Imperfect Competition Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly. Imperfect competition includes industries in which firms have competitors but do not face so much competition that they are price takers

Monopoly While a competitive firm is a price taker, amonopoly firm is a price maker. A firm is considered a monopoly if . . . – it is the sole seller of its product. – its product does not have close substitutes

The Meaning of Competition A perfectly competitive market has the following characteristics: – There are many buyers and sellers in themarket

The Law of Supply Firms are willing to produce and sell agreater quantity of a good when the priceof the good is higher. This results in a supply curve that slopesupward

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