Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
perfect competition
|
large number of firms all producing basically the same product
|
|
commodity
|
a product that is considered the same regardless of who makes or sells it
|
|
barriers to entry
|
factors that make it difficult for new firms to enter a market
|
|
imperfect competition
|
a market structure that does not meet the conditions of perfect competition
|
|
start-up costs
|
the expenses a firm must pay before it can begin to produce and sell goods
|
|
monopoly
|
a market dominated by a single seller
|
|
economies of scale
|
factors that cause a producer's average cost per unit to fall as output rises
|
|
natural monopoly
|
a market that runs most efficiently when one large firm supplies all of theoutput
|
|
government monopoly
|
a monopoly created by the government
|
|
patent
|
a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
|
|
franchise
|
the right to sell a good or service within an exclusive market
|
|
license
|
a government-issued right to operate a business
|
|
price discrimination
|
division of customers into groups based on how much they will pay for a good
|
|
market power
|
the ability of a company to change prices and output like a monopolist
|
|
monopolistic competition
|
a market structure in which many companies sell products that are similar but not identical
|
|
differentiation
|
making a product different from other similar products
|
|
non-price competition
|
a way to attract customers through style, service, or location, but not a lower price
|
|
oligopoly
|
a market structure in which a few large firms dominate a market
|
|
price war
|
a series of competitive price cuts that lowers the market price below the cost of production
|
|
collusion
|
an agreement among firms to divide the market, set prices, or limit production
|
|
price fixing
|
an agreement among firms to charge one price for the same good
|
|
cartel
|
a formal organization of producers that agree to coordinate prices and production
|