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27 Cards in this Set
- Front
- Back
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perfect competition
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a market structure in whice a large number of firms all produce the same product
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commodity
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a product that is the same no matter who produces it such as petroleum notebook paper or milk
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barrier to entry
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any factor that maks it difficult for a new firm to enter into a market
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imperfect competition
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a market structure that does not meet the conditions of perfect competition
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start up costs
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the expenses a firm must pay before it can begin to produce and sell goods
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monopoly
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a market dominated by a single seller
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economies of scale
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factors that cause a producers average costs per unit to fall as output rises
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natural monopolies
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a market that runs most efficently when one large firm supplies all the output
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government monopoly
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a monopoly created by the government
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patent
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a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time
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franchise
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the right to sella good or service within an exclusive market
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licese
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a government issued right to operate a business
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price discrimination
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division of customers into groups based on how muhc they will pay for a good
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market power
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the ability of a company to change prices and output like a monopolist
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monopolistic competition
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a market structure in which many companies sell products that are similar but not identical
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differentiation
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making a product different from other similair products
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non price competition
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a way to attract customers through style service or location but not a lower price
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oligopoly
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a market structure in which a few large firms dominates a market
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price war
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a series of competitive prices that lowers the market price below the cost of production
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collusion
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an agreement among firms to dicide the market set prices or limit production
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price fixin
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an agreement among firms to charge one price for the same good
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cartel
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a formal organization of producers that agree to coordinate prices and production
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predatory pricing
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selling a product below cost to drive competitiors out of the market
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anti trust laws
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laws that encourage competittion in the market place
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trust
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like a cartel an illegal grouping of companies that discouarges competition
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merger
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combination of 2 or more companies into a single firm
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deregulation
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the removal of some government control over a market
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