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University of Algiers 3
Faculty of Economics, Business and Management

International business
Bachelor degree
Subject 04: Market structure
Activity 1: Read the international words and guess their meaning.
Criteria, monopoly, oligopoly, limitation, economy, substitute, permanent, service.
 Correction:
 Criteria: A fast or level of quality that you use when making a choice or
decision.
 Monopoly: A market structure characterized by single seller, products for
which there are no close substitutes, and strong barriers to entry that prevent
potential competitors from entering into the market.
 Oligopoly: A market structure characterized by a few sellers, standardized or
differentiated products and substantial non-price competition.
 Limitation: The control of something so that it is less than a particular
amount or number.
 Economy: The relationship between production, distribution and consumption
in a particular country for a certain period of time.
 Substitute: Someone or something that used instead of another person or
thing.
 Permanent: Continuing forever or for a long time.
 Service: help that you get in a place such as a shop, restaurant, or hotel. Or a
system that supplies something that people need.

Activity 2 :Complete the table by inserting the missing forms.

Noun Verb Adjective/participle

monopoly To monopolize Monopolistic
completion To complete Complete
product To produce Produced/productive
payment To pay Payable/paid
reduction To reduce Reduced/ reductive
differentiation To differentiate Differentiated
restriction To restrict Restrictive/restricted

Activity 03: Match up the words with the definitions below.

barriers to entry cartel economies of scale
monopolistic competition monopoly monopsony
natural monopoly oligopoly perfect completion
 2

1) ……………………………exits when products are homogeneous, and there

are a great many firms too small to have any influence on the market price,
and firms can easily enter and exit industry.
2) A………………………….is a market in a particular product in which a single
producer can fix an artificial price.
3) …………………………………is the situation in which there is only once
buyer.
4) A…………………………………is an industry in which the efficient existence
of more than one producer is impossible; examples include public utilities
such as water, gas and electricity, where it would be inefficient to have several
competing companies laying their own networks of pipes or tables.
5) ………………………………….exists when many producers of slightly
differentiated products are able to sell them at well above their marginal cost.
6) An…………………………….is a concentrated market dominated by a few
large suppliers. This is very frequent in manufacturing because of economies
of scale and the cost barriers of entering an industry.
7) …………………………………are factors which cause the average cost of
producing something to fall as output increases.
8) ………………………………are economic or technical factors that make it
difficult or impossible for firms to enter a market or compete with existing
suppliers.
9) A………………………..is a group of producers or sellers who fix prices and
quantities in order to avoid competition and increase profits. This is illegal in
many countries, most notably the USA.
 Correction:
1) perfect completion 2) A monopoly 3) monopsony
4) A natural monopoly 5) monopolistic competition 6) An oligopoly
7) economies of scale 8) barriers to entry 9) A cartel