Economics Chapter 7

Front 1

Laissez fair

Back 1

philosophy that government should not interfere with commerce or trade "allow them to do"

Front 2

Industry

Back 2

the supply side of the market or all producers collectively

Front 3

Market structure

Back 3

the nature and degree of competition among firms operating in the same industry

Front 4

Perfect competition

Back 4

Large number of well informed independant buyers and sellers who exchange identicle products.

Front 5

maximun profit

Back 5

marginal cost = marginal revenue

Front 6

imperfect competition

Back 6

name given to market structure that lacks one or more conditions in a market with perfect competition.

Front 7

Monopolistic Competition

Back 7

Has all the conditions for perfect exept identical products.

Front 8

Product differentiation

Back 8

real or imagined differences between campeteing products in the same industry

Front 9

Non price competition

Back 9

use of advertising giveaways or other promotional campaigns to convince buyers that the products are somehow better than another ( oftgen takes the place of price competition)

Front 10

Oligopoly

Back 10

where a few large sellers dominate the industry, where one firms acts others usually follow

Front 11

Collusion

Back 11

a formal agreement to set prices or to other wise behave in a coroporative manner

Front 12

price fixing

Back 12

agreeing to change the same or similar prices for a product. (these prices are high than those under competition)

Front 13

Monopoly

Back 13

market structure with only one seller of a particular product, americans try to outlaw them.

Front 14

Natural Monopoly

Back 14

costs of production are minimized by having a single firm produce the product.

Front 15

economies of sale

Back 15

where the average cost of production falls as the firm gets larger.

Front 16

geographical monopoly

Back 16

a monopoly based on the absence of sellers in a geographic area

Front 17

technological monopoly

Back 17

a monopoly formed based on the ownership or control of a manufacturing method, process or other scientific advance.

Front 18

patent

Back 18

an exclusive right to manufacture ,use or sell any new and useful innovation for a specific time.

Front 19

government monopoly

Back 19

a monopoly the government owns and operates.

Front 20

market failure

Back 20

can occur when a condition is altered , that makes a free market.

Front 21

government monopoly

Back 21

a monopoly the government owns and operates.

Front 22

externality

Back 22

positive or negative unintended side effect. that affects a third party not involved

Front 23

public goods

Back 23

are products that are collectively consumed by everyone-market does not supply them

Front 24

trusts

Back 24

legally formed combination of corporations or companies

Front 25

price discrimination

Back 25

the practice of charging different people different amounts for the same product.

Front 26

cease and desist order

Back 26

an FTC ruling requiring a company to stop an unfair business practice.

Front 27

Public disclosure

Back 27

requirement that business reveal information to the public.