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20 Cards in this Set
- Front
- Back
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what is pure price competition?
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pure price competition involves many buyers and sellers, none of whom can individually influence the market price.
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what does pure price competition require?
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pure price competition requires
1)many buyers/sellers 2)identical goods/services 3) free entry |
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what are price takers
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they are essentially a part of pure price competition since they take the price that is determined by the market and decide how much to produce at that price
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what is monopolistic ocmpetition
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describes a market with many sellers selling similar but not identical products allowing them to raise/lower their price as they wish.
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what is differentiation
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emphasizing the distinctive features of goods/services
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what is an oligopoly
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it is a market dominated by a few large firms and they are price searchers
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what are price searchers
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they seek the best combination of price and production quantity. this also makes these few companies dependent on one each other since if one lowers their price all must follow or lose out
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A collusion is considered a incentive for oligopolies to restrict price competition. what is collusion exactly
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it is an agreement in which companies reduce production to raise prices and profits
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what are characteristics of a pure monopoly (1 seller)
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1)no close substitutes
2) a single seller 3)barriers to entry 4)natural monopolies (public utiliites, transportation) |
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what is a patent
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a legal right to use a product/idea for 17 years exclusively
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what is a copyright
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it is the exclusive right of the authors of original writing and artistic work to sell or in any way reproduce their works for their lifetime plus 50 yrs
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what is a trademark?
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it is a special design, name, or symbol that identifies a product, service or company
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what is a monopsony
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a market in which there is only one buyer
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what is a merger
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when one business buys another. the firm is either dissolved or becomes a part of the firm it was bought by
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what is a horizontal merger
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the combination of two or more companies engaged in the same business
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what is a vertical merger?
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two or more companies that combine which are involved in different steps of a production process
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what is a conglomerate merger
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combines two or more unrelated businesses under single management.
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what is a joint venture?
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companies get together to work on a project while maintaining their independence
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what is marketing
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marketing involves everything that takes place between production and the purchase of a product
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what are the four P's of marketing
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1) product
2)price 3) promotion 4)place |
