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27 Cards in this Set

  • Front
  • Back
perfect competition
a market structure in whice a large number of firms all produce the same product
commodity
a product that is the same no matter who produces it such as petroleum notebook paper or milk
barrier to entry
any factor that maks it difficult for a new firm to enter into 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 producers average costs per unit to fall as output rises
natural monopolies
a market that runs most efficently when one large firm supplies all the output
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 sella good or service within an exclusive market
licese
a government issued right to operate a business
price discrimination
division of customers into groups based on how muhc 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 similair 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 dominates a market
price war
a series of competitive prices that lowers the market price below the cost of production
collusion
an agreement among firms to dicide the market set prices or limit production
price fixin
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
predatory pricing
selling a product below cost to drive competitiors out of the market
anti trust laws
laws that encourage competittion in the market place
trust
like a cartel an illegal grouping of companies that discouarges competition
merger
combination of 2 or more companies into a single firm
deregulation
the removal of some government control over a market