Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

24 Cards in this Set

  • Front
  • Back
antitrust law
laws protecting commerce from unlawful restraints
a term generally used to describe a market in which there is a single seller or a limited number of sellers
monopoly power
the ability of a monopoly to dictate what takes place in a given market
market power
the power of a firm to control the market price of its product. A monopoly has the greatest degree of market power
per se violation
a type of anticompetitive agreement that is considered to be so injurious to the public that there is no need to determine whether it actually injures market competition; rather, it is in itself (per se) a violation of the Sherman Act
rule of reason
a test by which a court balances the positive effects (such as economic efficiency) of an agreement against its potentially anticompetitive effects in antitrust litigation, many practices are analyzed under the rule of reason
horizontal restraint
any agreement that in some way restrains competition between rival firms competing in the same market
price-fixing agreement
an agreement between competitors to fix the prices of the products or services at a certain level
group boycott
the refusal by a group of competitors to deal with a particular person or firm; prohibited by the Sherman Act
vertical restraint
any restraint on trade created by agreements between firms at different levels in the manufacturing and distribution process
vertically integrated firm
a firm that carries out two or more functional phases (manufacture, distribtution, and retailing, for example) of the chain of production
resale price maintenance agreement
an agreement between a manufacturuer and a retailer in which the manufacturer specifies what the retail prices of it products must be
predatory pricing
the pricing of a product below cost with the intent to drive competitors out of the martket
the possession of monopoly power in the relevant market and the willful acquistions or maintenance of that power, as distinguished from growth or development as a consequence of a superior product, business acumen, or historic accident
market-share test
the primary measure of monopoly power. A firm's market share is the percentage of a market that the firm controls
attempted monopolization
any actions by a firm to eliminate competition and gain monopoly power
price discrimination
setting prices in such a way that two competing buyers pay two different prices for an identical product or service
exclusive-dealing contract
an agreement which a seller forbids a buyer to purchase products fromt he seller's competitors
tying arrangement
an agreement between a buyer and a seller in which the buyer of a specific product or service becomes obligated to purchase additional products or services from the seller
market concentration
the degree to which a small number of firms control a large percentage share of a relevent market; determine by calculating the percentages held by the largest firms in that market
horizotal merger
a merger between two firms that are competing in the same marketplace
vertical merger
the acquisition by a company at one level in a merketing chain of a company at a higher or lower level in the cahin (such as a company merging with one of its suppliers or retailers)
the act of selling one or more of a company's divisions or parts, such as a subsidiary or plant; often mandated by the courts in merger or monopoliziation cases
treble damages
damages, that by statute, are three times the amount that the fact finder determines is owed