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25 Cards in this Set
- Front
- Back
perfect competition
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also called pure competition. an ideal market structure in which buyers, and sellers each compete directly and fully under the laws of supply and demand.
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buyers
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consumers
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sellers
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producers
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monopoly
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one seller controls all production of a good or service
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monopolistic competition
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a market in which many producers offer a similar- but not identical- good or service
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differentiate
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point out differences
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product differentiation
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an attempt by a seller in monopolistic competition to convince buyers hat its product is different from and superior to the nearly identical products of competitors
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nonprice competition
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when sellers compete on a basis other than price
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oligopoly
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a market structure in which a few large sellers control most of the production of a good or service
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interdependent pricing
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when sellers are very responsive to -or dependent on-the pricing actions of their competitors.
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price leadership
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most common form of interdependent pricing. One of the largest sellers in the market takes the lead by setting a price for its product.
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price war
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sellers aggressively undercut each other's prices in an attempt to gain market share
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collusion
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when sellers secretly agree to set production levels or prices for their products
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cartel
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companies openly organize a system of price setting and market sharing
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natural monopolies
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a single large seller that produces a good or service most efficiently
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economies of scale
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the sellers large scale, or size, allows it to use its human, capital and other resources more efficiently and economically than if those resources were divided among several smaller producers
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geographic monopolies
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technological monopolies
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patent
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copyrights
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government monopoly
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trusts
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laissez-faire
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antitrust legislation
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price discrimination
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